The Euro has received support against the Pound after Spanish Prime Minister Marianjo Rajoy told a newspaper that the struggling country will exit its two-year long recession in the third quarter of the year with the economy expected to post economic growth of 0.1% or 0.2%.
In an interview with the Wall Street Journal Rajoy said that Spain will emerge from recession in the near future but warned that it will still face the implementation of more austerity and painful measures before the nation will be able to put its 6 million unemployed back into work.
“Spain is out of recession but not out of the crisis, the task now is to achieve a vigorous recovery that allows us to create jobs” Rajoy said in the interview.
The country’s troubled conservative government vowed to cut its budget deficit and has imposed tough austerity and budget cuts as well as tax hikes in an attempt to fill the government’s coffers. Unemployment in Spain is currently standing at 27.1% but is expected to fall to 26.7% next year.
The Spanish leader said he now has two years to show voters that the economy is moving.
“If people see that what we have done is producing results, and also see that what has been done is creating a solid base for the future, I think we are in condition to recover,” he said. “But you can’t govern a country thinking every day whether or not they’re going to vote for you.”
Against the US Dollar the Euro is softer after the latest German business confidence data came in below expectations. Data released in the Netherlands also showed little improvement, the country’s manufacturing confidence declined from -1.6 to -2.8.
Euro (EUR) Exchange Rates
As of 11:30 am
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3487
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4362 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6264 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3877 <