Major German companies will meet with Spanish firms on Thursday in Madrid. The meeting will be held on the same day that Draghi outlines his plans for buying sovereign debt.
The meeting was agreed on during the last NATO summit held in Chicago in May. The timing could not be more apt, because it?s suitable for both parties. Apart from the official business, Merkel?s visit to Rajoy is critical. He has already met with Van Rompuy and Hollande. At a time when European leaders are deciding the future for Spain, Italy and the rest of European economy.
Managers from major German companies are worried about Spain?s flagging economy and what would happen if an inadequate solution is proposed. The reasons are clear: investments from Spain and Germany are greater than 40 billion euros, the two nations do over 50 billion euros in business with each other each year and 7% of Spanish GDP comes from exports to Germany. Because so many interests are at stake, businesses put pressure on Merkel to hold the meeting.
Spanish companies want to show their potential for resilience and growth and that our economy can compete with other nations. The goal is to increase investment in Spanish businesses, drive growth and emulate the nimble and efficient labor markets that exist elsewhere.
The meeting suggests that Germany is backing the Spanish economy which, despite serious problems, has significant potential that it just has to live up to.
