The Spanish Eyed, Unsmilingly

by Andrew Stuttaford

Open Europe has taken a look at a slew of new data emerging out of the IMF. A lot of it is fascinating in a horrible sort of way, but, for the most part, it’s rear-view mirror stuff (for example the Target 2 imbalances, and the extent to which they are the product of huge capital outflows from Italy and Spain are not new news), but this snippet caught my eye:

…The IMF does not now believe that the level of Spanish debt will stabilise within the next five years.

With the small print of Spain’s austerity program coming under increasingly sharp—and increasingly uncomfortable— scrutiny, not least from Open Europe, expect another Spanish panic soon (not that the last one has really ended).