In the past week there has been an enormous uproar in Spain created by an opinion article published in The Daily Telegraph under the title "Spain is officially insolvent"
Do we really believe that an article is so important that it could change anything if what it says is untrue?
The article, let's be clear, says nothing new or that has not been written before in reports by Citigroup, Exane, JP Morgan or a handful of local analysts.
I live in London and work in the City and as a Spaniard it angers me often to see how my country constantly revises and changes economic data expecting no one will notice and praying we can hold our breath for another month. No, the lack of confidence of markets is not due to the foreign press, but to of our track-record.
So, on to the article, let me clarify some concepts without entering into hopeless patriotism. Spain is not yet insolvent , but if it continues to spend and avoids tackling its debt issues hoping that someone else solves its problems, it run the risk of becoming so.