Mon. Aug 19th, 2019

"A messy Brexit" would be a problem for Europe

Guindos: “Un Brexit desordenado” sería un problema para Europa

The vice president of European Central Bank, Luis de Guindos, has explained this Monday that if it arrives at the end of March without agreement between the UK and the European Union, that is, "a Messy Brexit "It would be a problem for Europe.

The number two of the central bank based in Frankfurt has reviewed at an informative breakfast, organized by Deusto Business School Y KPMG, the economic and political situation in Europe and Spain. In this sense, he pointed out that "there will be no increase in interest rates until after the summer." And he has analyzed the situation of banking in Spain.

Monetary politics

"There will be no rise in interest rates until after the summer"

Guindos has indicated that the economic slowdown in the euro zone contributes to "having to deal with prudence monetary policy decisions. " The profile "deceleration is quite evident," he acknowledged. The next month of March, the ECB will present its new economic forecasts but has acknowledged that they will not be far from those recently offered by the European Commission.

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Regarding national territory, he stated that "the Spanish economy is behaving differentially best that of the eurozone, that is a reality. " This is due to two factors: "Competitiveness and the fact that the financial sector does not generate uncertainties or doubts", he stressed. The ECB vice-president trusts that these differential features will be maintained to avoid the slowdown.

Spanish economy

Guindos points out that improving the reputation of banking is "vital"

As for the Spanish banking, Guindos has sent several messages. On the one hand, he has urged that new cross-border operations. And on the other, without referring to BBVA, he assured that "the reputation It is vital for the rest of the business to work.

Asked specifically about the BBVA case and the eavesdropping of former commissioner Villarejo, he answered that the first ones interested in clarifying the investigations and knowing the conclusions of the analysis forensic commissioned by the entity itself is "the current management team".

As for Bankia, it has defended that it is a well-managed entity. And as for the chapter of the Popular, it has limited itself to saying that it was faced applying the European norm. And it was a good example to demonstrate how the resolution of financial entities is applied in the new context, which has served to reactivate the granting of credits to companies and families.


New tests "more dynamic" for entities

Guindos put on the table that in addition to the stress tests done by the ECB and the analyzes carried out by the EBA, the ECB has activated other analysis exhaustive "More dynamic"For banks in which entities will have to make decisions based on results. It has not materialized when these results will be known, but has made it clear that they will be public.

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