The Spanish government has been thinking about early elections for some time now, and they just consulted with the Bank of Spain to hear their advice on the matter. What to do? Miguel Ángel Fernández Ordoñez, who runs the Bank of Spain, has advised the Spanish government that if they are serious about ending the credit crisis, then they shouldn?t let president Zapaetero finish his term in office. According to sources consulted by elEconomista, while the government is ruminating on whether Zapatero can hold out until March of 2012, the Bank of Spain is advising him to carry out his term until October or November in order to boost market confidence and to promote credit flows.
On the contrary, Fernández Ordoñez warned the president that the first months of the year do not typically provide impressive economic data and that that could affect elections results.
Fernández Ordoñez also emphasized that an early election would allow the government to make the most of shockingly low employment figures from the summer months.
The same sources said that with this recommendation, the government´s strategy would allow it to give an image of transparency to the continual requests to hold elections early, and further, it could capitalize on employment statistics that usually show increases in summer jobs.
And that is one of the elements that many financial firms have been focusing on now that credit sources are opening up: that he sees out a long period of uncertainty that has thwarted a surge in debt investing.
