By Euro Weekly News Media • 23 January 2015 • 16:48
Italy's Mario Draghi Accuses Vaccine Companies Of Double Selling Doses.
THE Spanish economy – and the spending power of expat pensioners and British tourists alike – got a boost when the European Central Bank (ECB) announced it was buying 10 per cent of Spanish public debt.
As part of a €1.1 trillion plan to inject liquidity into the Eurozone countries by quantative easing, the ECB will buy €100 billion of Spanish government bonds between now and September 2016.
In effect that means 10 per cent of Spain’s €1 trillion debt will be taken over by the ECB.
In many ways it is good news as the European-wide package of moves it is part of is likely to devalue the Euro. That will be a boost to Spanish exporters whose products will become cheaper on the world markets, and mortgages are likely to become cheaper as the Euribor rate, which variable rate mortgages track, is also set to fall.
People receiving a UK pension will also see the benefit as the Euro weakens due to the flood of money released and their pound is worth more. A stronger pound will also help Spain’s tourism industry, worth an estimated 12 per cent of the Spanish economy.
The idea behind the injection of liquidity is to encourage banks to lend more, which in turn will help businesses and the property market.
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