Spanish markets rock in wind from Greek storm

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Tomás Fano - Wikimedia commons

THE Spanish stock market has been shaken by the Greek banking crisis.
As Greek banks stayed shuttered on Monday morning and cash machines were closed down or had €60 withdrawal limits in place in the run up to a referendum on bail-out proposals, the effects were felt by global financial markets.
The Spanish stock index IBEX 35 was down 5.6 per cent today (Monday June 29) on Friday’s numbers. There were drops of more than four per cent in Germany, France and Italy.
The Spanish Economy Minister Luis de Guindos told press today that the country’s economy was now strong enough to be protected from the Greek crisis.
“In terms of creating a firewall against extraordinary external events like the Greek situation, whatever measures haven’t been put in place already would be difficult to put in place now,” said the minister.
“Fortunately, Spain’s best firewall is what it has already done, such as bolstering its banking sector, reducing its public deficit and posting growth in exports, which ‛seals’ the Spanish economy against the kind of ‛corralito’ in place in Greece,” he continued – the term coming from Argentina’s 2001 crash when bank accounts were frozen.
Although he conceded that this is a “delicate moment” for the Eurozone, he said he believed Greece would stay in the euro, and that regardless Spain was better prepared to cope with such turmoil than it had ever been.

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