Monday, July 16, 2007
Spain cannot copy Germany’s hard labour methods. It is nigh impossible to deflate against a low inflation country, without mass defaults and civic revolt.
Spain is the first candidate for crisis, blighted by an ECB-created property bubble, and a corporate financing gap of 10pc of GDP. "The risk is that Spain will tip over the interest rates rise, and it will find it very difficult to claw its way back out again," said the bank.