By Jaime Ortega.
Emerging countries are driving their markets on fifth gear and the U.S. is hitting third.
The Director of the International Monetary Fund and Capital Markets IMF, José Viñals, said that in the global economy there are three speeds and the recent statistics shows that the Old Continent: “Europe is a car set in neutral while others are changing gears.”
In his view, “the emerging countries are already shifting to fifth gear and growing closer to 5% and that the U.S. is going to pull into second gear and shift to third”, while the European economy decreases.
The Former Deputy Governor of the Bank of Spain has highlighted in the XXIX Annual Meeting of the Economic Circle also within Europe, that there are two groups and included that in the latter, of the “periphery” is located the Spanish economy and its financial system.
However, he described the financial circuit to be of zero deficit in the euro zone as “a marathon rather than a sprint.” “As St. Augustine said, God, make me virtuous, but not yet!” He joked. That does not mean that the relaxation in the adjusted rates must be accompanied by a “credible medium-term strategy that will give confidence to the markets.”
To Viñals, the European Central Bank is allowing time for European governments to “to play the extension of the party”, but the clock is running out.
“The choice is not to choose between adjustment and growth, but between acting and taking bold political time or to at the very least postpone again thinking that time is our ally,” said lieutenant of Miguel Angel Fernandez Ordonez in the first two years on the stage of such problems.
Coinciding with the end of the Troika visit to Spain, the senior member of the IMF has been positive with Spanish banks and has stated that there has been “significant progress.”
The rapporteur highlighted in a debate with, among others, the director of the French Cabinet Office, Jean Pisani-Ferry, that the phenomenon “in the U.S. has revived again to trade sophisticated financial products as before the crisis.”
Pisany added that, “there are still unregulated companies that issue junk bonds to be very risky.” But these have been shown to disrupt the political causations of liquidity, to carefully watch “these vulnerabilities emerging in the euro markets.”
