The past few years have been quite difficult for Spain as it has struggled to attract funds and increase employment. The recession that took place all over the world has affected Spain significantly.
With the pursuit of increasing the funds and to save money, the government had to impose various cuts in job and budget of various sectors. However, the situation is turning to look uglier as unemployment record is set to hit a highest rank in 2013.
Recession has pushed Italy and Spain to take financial aid of the European Central Bank. However, the European Central Bank has asked them to place austerity plans before getting the bailout. At present, Italy and Spain are seeking financial aid of the European Central Bank.
Italy Prime Minister Mario Monti has been pressuring Spain Prime Minister Mariano Rajoy for accepting the pre-emptive bailout. However, Rajoy has not accepted the advice. If the suggestion of Monti would have been accepted, then Italy might have got the bailout easily.
For the second day in row, the world shares saw a rise, with currencies, including euro and dollar doing well, following reports, which subjected that Germany has offered a more flexible approach in helping out Spain, alongside US corporate earnings showed an upward trend.
It has been reported that the US stocks started at a high note, provided an uprising by the earning reports, which covered Johnson & Johnson and Goldman Sachs that showcased profit as revenue more than doubled.
Strengthening in the rand has given hopes to investors, as they think that Spain will look out for bailout. Experts were of the view that main reason for which rand has strengthened is that it is thought that Spain will seek bailout.
"It is still very gloomy for the rand due to everything that is happening in SA; loss of productivity, trade deficit and the recent downgrades", said Lynden Reabow from PSG Prime. He further affirmed that if things went as per his expectations then the good news of rand strengthening would not last for long.
Thursday's meeting of European leaders will be the fourth meeting in 2012 in regard to find out solution for debt crisis. It was in 2009 when Greece declared about crisis and since then, a number of meetings have been carried out to reach at a conclusion.
Experts were of the view that they still think that no change is going to be witnessed this time as well. Diplomats were of the view that some of the issues that will be discussed in the two-day meeting are to unite bank and economies.
Noble prize winner Joseph Stiglitz, an economist, was of the view that steps being taken by Greece and Spain have put them into more problems in regards to finance. Joseph was of the view that austerity measures being adopted by both the countries have put them in more problems.
He was present in a conference in New Delhi and affirmed that he is more tensed than both the countries. Moreover, Stiglitz said that even the International Monetary Fund is not that positive that the eurozone economy will be able to show any sort of growth.
Spanish Police gave a brilliant slap to criminals this time. A broad operation was initiated to catch those troubling Chinese gangs that since long were creating mess under the nose of police department by making fiscal frauds and money laundering. Finally, around 74 people have been arrested by the Spanish police in this operation.
Around 300 officers participated in this mission and it was mainly Madrid and Barcelona that were targeted for this operation.
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