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Willkommen in Spanien. Welcome to the front of the European team

Zapatero has described this time as one of the most important in recent years. It is a crucial summit, there's no doubt, and Spain is committed to the project and these corrections. If something good has all this drama is that this country tries to stand up to the end and with some courage. Yesterday four German newspapers published interviews with the English president, who claims not to fear a Germanization of Europe and beyond asking the Germans in football metaphor, performing on center front. I also I have doubts. Today we received in Spain, Angela Merkel, accompanied by six ministers. The Germans will meet with Juan Carlos, the head of state and Rodriguez Zapatero, head of Government and lunch at the Moncloa, together with major national employers, union leaders and bankers. She represents the best positioned economies in the European Union, while he has traced the ballot to make the European economy has impoverished more rapidly in the last two years. Spain had a 20.3% unemployment at the end of 2010, the highest percentage, not in the European Union, but throughout the industrialized world.

Merkel publicly support the pension reform adopted by our government and financial restructuring (reform of savings banks). Tomorrow they'll see both in the Brussels Council, where the future of the euro back to overshadow the debate of the unified energy policy, adjourned sine die. Germany has been the promoter of the Covenant on Competitiveness, which has received support from France, Italy and Spain. Zapatero's support for these four states is enough to give a patina of credibility to the issue.

For the first time there is a drastic change compared to last spring. Now Germany is in favor of harmonization of economic policy in the eurozone. The proposed Covenant Merkel even talk to harmonize tax and labor policies, breaking at a stroke all taboo issues. From now on, and mediating this covenant Zapatero already subscribes, he must resign from the salary increase in inflation, and Deficits constitutionally prohibited (this reminds me of the internal devaluation Krugman speaking). Behind this shift is the Stability Fund, to which Barroso and others have asked for additional guarantees (or weak countries to buy back bonds in the secondary market), as well as its expansion to 750,000 million euros.

Incidentally, this was approved at the quarterly Council in late March, with what we have almost two months to see how they move the markets. Says the press that Spain must convince the markets. Some suggest that it is a German move not be exposed to speculative attacks against Spain, and the rebound effect of debt on the German banking English, but I think this goes much further. What do you think that Germany has taken serious about recruiting labor English qualified? Spain has a youth unemployment rate above 40%, and the European Union requires greater labor mobility, as a priority area for the internal market. All this encouraging harmony and convergence that we see in economic matters is blurred in the energy field, the second major battleground. The differences in energy are so enormous and troubling. My next thought. But one thing, and receive a Merkel and her team. At 14.30 we will be in the joint press conference.