"GoldMoney's James Turk interviews Félix Moreno de la Cova, who is a studied economist, trader and GoldMoney contributor. They talk about the dire economic outlook for Spain and the country's fiscal difficulties.
Félix states that Spain is heading off a cliff with a fiscal gap of €150 billion a year. While government revenues declined after the pop of Spain's real estate bubble, government spending actually increased. He argues that must off the newly implemented "cuts" in reality are tax increases which will further slow the economy.
He doesn't attribute much likelihood to the idea of Spain leaving the eurozone. Rather he thinks that there will be more centralisation of power in Brussels with continuous bailouts of the periphery countries.
As long as the fiscal situation does not improve the on-going capital flight from Spain will lead to a further deterioration of Spain's economy. However Félix doesn't see the necessary political will and leadership which would be required to balance the budget."
- Source, Goldmoney: