In the last 48 hours “things seem to be getting back on course” said on Saturday Spain’s Minister of Industry Jose Manuel Soria in reference to the ongoing conflict with the Argentine government over the possible take over of YPF, the Argentine affiliate of Spain’s Repsol.
Spanish officials warned Argentina on Friday that the country risks becoming an international pariah if it follows through on its threats to take control of Spanish-owned energy company Repsol's majority stake in its YPF unit.
Spain says its national debt will spiral sharply higher this year as data showed unemployment hit a record high in March, complicating efforts to stabilise the country's strained finances.
Spain is cutting 27bn Euros from its budget this year as part of one of the toughest austerity drives in its history. Changes will include freezing public sector workers' salaries and reducing departmental budgets by 16.9%.
As Spain heads for its second recession since 2010 and unemployment stands at 23%, workers angry at a labour reform the government calls an unstoppable necessity staged a general strike on Thursday, bringing factories and ports to a standstill and igniting flashes of violence on the streets.
“Malvinas and the Spaniards (‘gallegos’) are always to blame” warned UK PM David Cameron to his peer Mariano Rajoy when they met in London over a month ago to talk bilateral issues and the growing irritation caused to both countries by Argentina with its claims over Falklands’ sovereignty and natural resources.
Spain's conservative People's Party won a regional election in Andalucia but did not secure the outright majority it expected, depriving Prime Minister Mariano Rajoy of a symbolic boost to help him push through harsh spending cuts.
Italian Prime Minister Mario Monti expressed concern about Spain's public finances and said it would not take much to reignite the Euro zone debt crisis and revive the risk of it spreading to Italy.
The British Government is understood to be supporting a local Gibraltar–Campo (Spain) fishermen resolution to the recent spate of exchanges over fishing rights in British Gibraltar territorial Waters.
Argentina and Repsol-YPF oil corporation again clashed on Wednesday over the future of the Spanish owned company while members of President Cristina Fernandez administration said measures “can not be discarded” thus re-launching fears about further government actions.