Business View

German Chancellor Angela Merkel on Wednesday reiterated his opposition to the “easy solutions” before traveling to Paris for dinner with French President, François Hollande, on the eve of a summit that is expected to go remedies to the crisis in Europe, frightened by a Spain that is teetering.

In a speech to Parliament Germanic, Merkel warned again that there is no “quick fix (not) easy for the crisis,” taking a cold shower to the expectations of the summit of EU leaders on Thursday and Friday in Brussels.

Structural reforms in countries with problems will be “high on the agenda” of the summit, reminded the chancellor, who said he hoped “disputes” and that “all eyes, or at least many, are made in Germany”, leaving clear that the only medicine to overcome this crisis that threatens to engulf the euro austerity.

And is that the forces of Europe’s largest economy is not unlimited, and Berlin has already made enough concessions to Europe, estimates the head of the German Government has repeated its opposition to any form of mutualisation debt in the euro area while not strengthen the possibilities of “control and intervention” of national budgets.

The day before, in a meeting with a group of parliamentarians, Merkel was quoted as saying that the Eurobonds, which many consider the salvation of the monetary union will not see the light while you are alive. For Berlin, these instruments can only come after further European integration in which member countries increasingly cede sovereignty to Brussels.

Merkel Is this what you want to put on the negotiating table in Brussels, on the basis of the roadmap prepared by the EU president, Herman van Rompuy, which proposes the creation of a banking and economic union along the next ten years.

If the idea of ​​further integration with acceptance, for many it is a secondary issue given the seriousness of the crisis. Cyprus earlier this week became the fifth country of the monetary union to seek help from its partners, Spain and Italy are more than ever in the eye of the hurricane.

The fall in gross domestic product (GDP) Spanish accelerated in the second quarter, said on Wednesday the Bank of Spain. The Prime Minister, Mariano Rajoy, has also warned that the country may be financed for a long time with the current interest rates, which are slightly below 7% (6.8%) for the debt to ten years.

Secretary of State for Public Administration, Antonio Beteta, today announced that the State shall abolish all associations and recalled that the Provincial assume the powers of those municipalities that do not meet the Budgetary Stability Law.

In a press conference after the launch of the ‘Study of the Integrated Environmental Authorisation’, Beteta explained that this decision is framed in the context of Local Government reform presented by the government and wants a pact with the PSOE and other political parties.

“This is a very important rationalization savings will be quantified in the time it is finished close the political negotiations,” said Beteta, who has warned that in the event that no agreement, “will anyway. ”

So, has revealed that the associations (legal entity formed by grouping of municipalities) “is deleted all”, while the Provincial managed municipal powers of those municipalities that by violating the Law of Budgetary Stability, unable to provide “effective and efficiency “public services.

Beteta noted also that the elimination of municipalities will result in the suppression of public office and, through the Law of Transparency, “there will be a rationalization and standardization of the different wage levels.”

Also referred to a report by the Institute for Fiscal Studies, “which shows that it is 20 times cheaper to provide a global service by a council to small municipalities, the provision of such individual.”

“The Government understands that it is not absolutely required the removal of municipalities, but it is required that all municipalities comply with the budgetary stability, which spend only what you enter,” he stressed Secretary of State for Public Administration.

In this regard, he indicated that “in the long process of supplier payment” has been found that some 3,000 municipalities, of the existing 8,116, have not complied with the budgetary stability law and therefore “could not continue to manage their own interests. ”

“It’s about redefining the powers and establish clearly the powers vested in municipalities and have the obligation to comply with its own resources,” he explained.

Once you have satisfied these skills from their own resources, has said, “will move to negotiate competencies that are specific to the regions through agreements.”

The engineering company public Ineco be responsible for project management work is to bypass a road in Sao Paulo, which has a budget “important” and financing-American Development Bank, announced today the Minister of Development, Ana Pastor.

In response to a question from the popular MP Andrew Ayala, the head of Public Works explained that this agreement is the result of the trip he made last week to Brazil in the Rio +20 conference.

Pastor has indicated that the Spanish public companies will once again accompany the rest of Spanish companies to overseas projects such as Saudi Arabia awarded to build the high speed train between Mecca and Medina, which would be a “source wealth for our country. ”

It has also emerged as one of the most important Brazilian AVE from Rio and Sao Paulo, which has more than 500 kilometers and in which both ADIF and RENFE tender and all companies interested in participating.

He recalled that also will be launched near the metropolitan area of ​​Sao Paulo and the metropolitan express train.

Regarding airport I had the opportunity to be with the head of the National Civil Aviation Agency of Brazil, Wagner Bittencourt, which dealt with the proper positioning of AENA throughout Latin America, “the first airport operator in the world,” he noted.

The Bank of Spain has warned today that the Spanish economy has continued to deteriorate in the second quarter at a “more intense” than expected, due to the decline in private consumption.

The first Economic Bulletin published under the new mandate of the governor, Luis Maria Linde points out that the gross domestic product (GDP) fell by 0.4% in the first quarter year on year, and notes that in May continued to fall in confidence indicators household and retail.

He adds that vehicle registrations have accelerated their decline in May, as sales of retail and consumer goods and services of large companies.

The watchdog also noted that job losses continued at a remarkable pace and continues the path of “surge” began in the second half of 2011.

The Bank of Spain begins his chapter on the actual evolution of the Spanish economy recognizing that the Spanish economy has been “strongly” affected in recent weeks by renewed tensions in financial markets in the euro area, which led to Executive to apply for financial aid to clean up the Spanish banking system.

Insists that this loan, which will come from the European Facility for Financial Stability (EFSF) or European Stability Mechanism (MEDE), “will associated conditions on the financial system.”

On the macroeconomic situation, the supervisory body affects the weak demand for capital goods in the second quarter, falling industrial production and behavior “unfavorable” in investment in construction.

These negative data adds the decline in real exports of goods in April year on year, and imports, which “reflect the weakness of domestic demand,” particularly by falling purchases of consumer durables or team.

The Bank of Spain also advanced with the data for April that the growth of liabilities of the government has stabilized on year and there is some emphasis on the pace of contraction in household debt and the companies and their most liquid financial assets.