By Jonty Bloom
Over the summer holidays, while many of us have been in Spain or Italy soaking up the rays and the vino, something radical seems to have happened to the Spanish and Italian economies. With no-one noticing, they must have had a massive spurt of economic growth, become much more efficient, cut their public spending or raised billions in new taxes. Or possibly they have done all four. How else is it possible to explain the fact that, after lurching from crisis to crisis for years, all of sudden the financial markets seem to have decided to lend the Treasuries in Rome and Madrid billions of euros at massively cheaper rates? Because that is exactly what has happened. Just three months ago, Spain was paying 7.5% to borrow money for 10 years on the bond market, but on Friday morning, the rate was 5.3%. For Italy, the rate has fallen from more than 6.5% to about 4.75%. To Read More……
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