Spanish economy minister predicts more recession in 2-H of Y 2012

Spain's Minister of Economy and Competitiveness Luis de Guindos said on Sunday that he expected the recession to continue in Spain throughout 2-H of Y 2012.

Mr. De Guindos was speaking at a summer school organized by the right-wing FAES Foundation, which is presided over by former Spanish prime minister Jose Maria Aznar.

Mr. De Guindos added that this negative growth would be slightly higher than the 0.3% reduction in Spain's GDP in Q-1 this year.

His remark look to be more optimistic than the official statement, which forecasted that the economy will shrink by 1.7% during Y 2012.

He was convinced that Spain could take an important step forward in terms of growth and prosperity, provided that the banking system was reformed, the debts cleared and the government's economic reforms implemented.

Mr. De Guindos also welcomed the decision taken by EU leaders in Brussels to grant the bailout to recapitalize Spain's banks and to direct 120-B Euros to help promote growth.

It is a project that is not just economic, but also political, he said.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.