@Chris McCarthy wrote:
I don’t know why…
Because Spain’s recession is three times deeper than forecast. The IMF predicts its economy will shrink 1.6% this year. Its general unemployment level is at 27% heading for 30%.
Bond yields have dropped from unsustainable levels of over 7% to around 4.25% because of austerity measures. Rajoy will announce more this Friday. There is speculation IVA will take another hike.
Pleasing the Germans comes at quite a price.