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The Corner contextualizes the EU’s economy from Spain with exclusive analysis from market leaders.

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TLTRO alone might not be a game changer for Eurozone credit recovery


MADRID | The Corner | Supply and demand conditions for Eurozone credit generation are improving – this is clearly reflected in the ECB’s latest Bank Lending Survey – but the way towards a full normalisation is still long. We believe that reduced bank funding costs might support, but will not aggressively accelerate, the recovery in credit growth. 

In Europe

Run this way: The recurring pattern of Greek leaders

ATHENS | By Nick Malkoutzis via MacroPolisAs the Greek general elections of May (and then June) 2012 approached, every poor unfortunate European politician attempted to grab a moment in the spotlight by pontificating on whether Greece should or should not be in the single currency. While the euro vultures picked at Greece’s carcass, thousands of fear-stricken Greeks withdrew their money from local banks. Who knows, maybe in our strange world of acute fiscal adjustment and extreme political polarisation it is a sign of progress that Greece no longer needs foreigners to encourage a bank run. Local politicians can do the jobs themselves.


greek politicians

How caution resulted on a weak TLTRO

MADRID | By Julia Pastor | The first TLTRO auction will not make history for its significance. Eurozone banks only asked for €82.6 billion, from which €14.147 million will go to Spanish entities (Santander €3bn; Caixabank €3bn;  Popular 2.847 bn ; Bankia 2.7bn and BBVA 2.6bn), much less than the expected 100-150 billion, was firstly interpreted as a poor credit demand, although a second reading shows that lenders were right to be cautions.


Morning coffee: investors try to keep up with market’s train speed

MADRID | The Corner | European stocks climbed as investors waiting for the Fed’s FOMC decision and Scottish referendum outcome began to take positions again. However, analysts say market behaviour will be not easy to predict due to today´s quadruple witching hour. Western markets, both bonds and stocks, have a much simpler scenario to assess and may turn to macro and companies’ fundamentals.

In Europe

Scottish voted no

madrid | By Álex García


EBC’s first TLTRO misses expectations

MADRID | By Julia Pastor | As expected, ECB’s September TLTRO will not make big headlines. 255 European banks borrowed €82.6bn of liquidity below consensus estimate of €100-150bn. Although the Frankfurt-based institution doesn’t provide a geographical breakdown, banks in Italy and Spain were among the leading borrowers (40% of the total) to trim funding costs. Spanish entities are thought to have asked half of those €30bn at their disposal, although some entities “are not willing to disclose how much they asked for,” an ECB source confirmed to The Corner.

In Europe

Corporation tax: Irish soften stance amidst growing international pressure

MADRID | By Sean Duffy | The OECD´s announcement this week that it was initiating a plan to combat tax avoidance schemes from multinationals has been met with almost universal approval across Europe. Ireland in particular has been the subject of criticism from its EU partners. Until recently, the country had determinedly defended its tax policy, famously refusing to negotiate on the issue when the country was in need of an EU bailout back in 2009.