C’mon let’s be honest, it’s been pretty much a clusterfuck…..

  • Recent tensions powerful reminder crisis is still far from over (you can take that to the bank!!)
  • Measures in Spain to recapitalise credit system has lost no momentum due to ECB’s LTRO
  • Cannot be ruled out further adjustment of employment levels despite labour reform
    :(
  • Failure to meet deficit targets would lead to further contraction, losses of employment, welfare
  • It is urgent measures are adopted to ensure regional govts achieve deficit targets (got that right pumpkin)
  • Spanish economy is once again in recession
  • Outlook for 2012 not favourable, subject to high degree of uncertainty
  • Exports may be the only component of output to increase in 2012
  • If reforms, measures restore confidence, reduce financing costs, 2013 may see recovery
  • Size, timing of fiscal consolidation required may have negative effects on activity in short term
  • Any strategy other than fiscal consolidation would have very negative consequences for market confidence in Spain
  • Scale of adjustment required so great Spain must use all instruments available, including taxes
  • If budget deviations seen, more measures must be taken in expenditure, new tax measures
  • Cannot be ruled out that temporary tax increases may have to be replaced by permanent measures
  • Mechanisms obliging govt deficits to be corrected have proved to be insufficient
  • Current budgetary imbalance main obstacle of growth for economy
  • Crucial to insist regions comply with requirements connected to financing help

Reuters reporting (except the comments in brackets, which are mine)