Photo: Wikimedia Commons
Via Morgan Stanley, in a note to clients this morning on the Spanish financial crisis and the upcoming Euro 2012 soccer tournament:Spain’s football clubs, just like its economy, are more leveraged than their peers, with a few commentators joking that some players might be used as collateral for ECB funding. Spain is in the market spotlight too. Investors, like football fans, are watching closely.
That a football championship, through the confidence channel, can visibly boost Spanish growth is too much to hope for. But Spain has an export advantage it can build on, and the structural reforms that the absolute-majority government is implementing might well pay off further down the line.
Spain plays Italy on Sunday. Brace yourself for the economics headlines.