Spain’s turn toward wage cuts to restore competitiveness without leaving the euro is starting to bear fruit. At least that’s how it seems for Pablo Garcia, a 34- year-old autoworker who just got hired after a year out of work.
Spanish Prime Minister Jose Luis Rodriguez Zapatero wants to lure private investors to the country’s savings banks to share the burden of shoring up their capital. It won’t be easy, analysts and investors said.
Spain’s effort to bolster its banks, stanch spending and stave off sovereign debt contagion will hinge in part on the initial public offering of Bankia, a lender formed from the merger of seven savings banks.