Panama and Sacyr near agreement to resume canal project

The Panama Canal conflict is about to end even though involved parties have prioritized their squabbles over public interests so far. Abandoning a project to widen the canal could have caused major losses for the construction group led by the Spanish firm Sacyr, Panama and Spain's global image.

The Spanish government now wants to Sacyr to finish the Panama Canal project instead of dropping it. Since the government endorses this option, Sacyr is providing guarantees that it can cut costs by 30 million euros. This would make Luis de Guindos and Montoro happy. Both fear that a botched deal could hurt the national deficit. Panama has accepted a modest proposal from Sacyr, and everyone seems ready to go forward with the project.