Zapatero is the 'key' to save the euro

The British weekly The Economist says the Spanish prime minister is "the key" to prevent the collapse of the euro, and that what happens in Spain is "crucial" to the single currency. Therefore, claims the leader of the Spanish government to "revive the reforms" to stop the fall of the euro.
"The euro's future resides in Germany and the European Central Bank, they, after all, are those with the money. But right now, Zapatero is the key. If you act quickly, he could play a key role to prevent the collapse of the single currency, "he added Euro and european economy."
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In an article entitled 'Contagion from Ireland to Iberia', 'The Economist', which also refers to the Spanish prime minister as "Zapateuro" points out that, unlike as happened after the rescue to Greece in May, investors are Instead of just "have stopped to catch his breath before continuing knocking the Irish assets, as well as Portugal and Spain Euro and european economy."
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 Zapatero the solution to save the euro

"The euro's future will be secured only when the infection is gone. And this, it is now clear, depends crucially on what happens in Spain," he warned.
In this line, the financial weekly said that while "panic" was limited to Greece, Ireland and Portugal, the eurozone could afford it, but warns that Europe's rescue plan "is not big enough" to cope with the problems of the fourth largest economy in the euro zone, with a GDP that exceeds that of Greece, Ireland and Portugal combined.
In this regard, stresses that fears about Spain seem "exaggerated" because, while sharing some of the banking problems in Ireland or the "horrible competitiveness" of Greece, has fewer problems than them. "The public debt of around 60% of GDP, is below the German and the EU average. Its banks are strong. His multinationals are increasing their exports," he adds Euro and european economy."

However, accused Zapatero, "who has shown that really understands the need for reform", of making a "big mistake" when it adopted its adjustment measures in May after the pressure received by the markets after the crisis in Greece . "In part because these actions earned him a break from the markets, and partly because it resulted in a 10-point drop in popular support for the PSOE and the general strike call their friends in the unions, others postponed reforms, "he criticizes.

Euro and european economy

Thus, 'The Economist' points out that Zapatero is now again facing markets "with open eyes" and a widespread perception that the Spanish economy will only grow. Also, remember that unemployment has been stuck above 20%, the indebtedness of households and firms is above the European average and that the "impenetrable regional government accounts invite suspicion and the Euro and european economy."

In this sense, the British weekly emphasized that when markets are consumed with worry is never easy to change their minds, so they said that if Zapatero wants that to happen, should take several steps "quickly."
Among these, the need to develop a medium term fiscal plan "credible", which means come clean on the debt of the banking system and the regions, and to accelerate a plan to increase the retirement age from 65 to 67 years Euro and european economy."

Secondly, points out that Spain should do more to help Spanish companies to compete, "because once it is clear that Spain can grow, your debt will be much less fear." In addition, notes that his labor reform was "very shy" with "a rigid, centralized system of collective bargaining mandates for annual growth of wages, no matter what."