Tag Archives: Iberia

Iberian economies could face financial crisis

Spain and Portugal could follow Ireland’s meltdown

Portuguese and Spanish economies have been faced with serious fears that their respective economies could face meltdown. With the recent news that Ireland has been forced to be helped with a EU bailout, the Iberian nations could follow suit.The Spanish government have pledged that their economy will reduce its deficit, but the market is not so confident. Also the Portuguese have announced that they aim to slash their deficit this year by 2 points from 9.3%.

I hope that the Iberian nations do not need a bail-out from the EU, but my gut feeling is that they will follow Ireland’s path and need it. This could be very bad news for not just the EU, but for the global recovery. Many fear that the economically damaged nations will re-enter recession, resulting in double-dip recessions. If one or many re-enter, or are allowed to re-enter, recession again it will result in a setback for the global recovery. As much I hope that the Iberian nations are financially sound, I fear that another bail-out could happen soon.

Below is a link to the BBC News article:

Pressure gets too much for Portugal and Spain

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British Airways and Iberia merger moves closer

Airlines clear final hurdle for merger

Today, British Airways and Iberia’s proposed merger passed its final test as the Spanish airline approved BA’s new funding plan of its multibillion pound pension deficit. This final hurdle will hopefully see the merger become final by the end of the year. When this deal goes through, the combined company will be known as International Airlines Group (IAG), where BA will hold 56% of the company and 44% by Iberia.

This deal comes as some good news to British Airways where the past few months have seen many of its staff unsettled resulting in industrial action. The recent staff strikes along with the volcanic ash cloud, have affected British Airways a lot in the past few months. This news from Iberia comes as some form of relief and hopefully British Airways can move onwards and upwards from here. I hope British Airways can recover from its past issues and this merger can help them become a bigger and better airline.

Below is the link to The Guardian’s article:

BA and Iberia merger cleared for takeoff

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