The Eurozone has sustainable economic growth without the aid of credit increases, the public deficit is under control in most Eurozone countries—except Spain—and there is a large current account surplus.
Despite these positive indicators, the Italian banking crisis episode sent different signals about the European banking system. Fortunately, the European banking system is in a more solid position than it was two years ago, increasing the chances of successfully facing a crisis. The Italian and Portuguese banking systems are concerning: both are undercapitalized compared to their European counterparts and have profitability problems that make private recapitalization unfeasible. The Spanish banking system, which is also undercapitalized, has enough revenue to autonomously increase the capital ratio.
Contents
- Gross domestic product (GDP)
- Purchase Managers’ Indexes (PMIs)
- Cyclical sector demand
- Employment trends
- Economic sentiment
- Monetary aggregates
- Consumer Price Index (CPI) and CPI differential with other eurozone countries
- Industrial price index
- Spanish stock market (IBEX 35)
- Spanish sovereign bond yields
- Non-performing loans/assets in the Spanish banking system
- Spanish banking sector assets
- Credit to businesses, to households
- Yield curve spread
- Public sector
- Balance of trade and current account analysis
Author
- Daniel Fernández
Daniel Fernández is the founder of UFM Market Trends and professor of economics at the Francisco Marroquín University. He is a PhD candidate in Applied Economics at the Rey Juan Carlos University in Madrid and was also a fellow at the Mises Institute. He holds a master in Austrian Economics the Rey Juan Carlos University and a master in Applied Economics from the University of Alcalá in Madrid.
