Spanish debt has again been in the firing line on financial markets after a review for possible downgrade from credit rating agency Moody’s on Friday. It cited weak growth and hefty regional spending as key challenges for the euro zone’s fourth largest economy.
Spain’s prime minister called early elections on Friday, gambling that a summer jobs boom may allow his Socialists to snatch victory despite economic stagnation that has contributed to the euro zone’s debt crisis. Although polls suggest the conservative opposition will easily win the Nov. 20 vote, Socialists have narrowed the gap in recent months as the economy begins to show faint signs of recovery.
Most economists expect strong employment figures during the tourism season, a key driver of the Spanish economy.
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