Spain Today - News Briefing - October 17, 2024

Key Highlights:

• The Spanish political landscape remains fraught with accusations of corruption and calls for resignations.
• The European Central Bank has cut interest rates for the second consecutive time in an attempt to bolster a struggling Eurozone economy.

Politics:

• PP's Lawsuit Against PSOE Rejected: The Anticorruption Prosecutor's Office has recommended dismissing a lawsuit filed by the People's Party (PP) against the Socialist Workers' Party (PSOE) over alleged illegal financing. The lawsuit stemmed from reports of cash deliveries to PSOE headquarters. The judge will now decide whether to proceed.
• Sánchez Defends Attorney General, Demands Ayuso's Resignation: Prime Minister Pedro Sánchez defended Attorney General Álvaro García Ortiz after the Supreme Court opened an investigation into the alleged revelation of secrets related to a tax fraud case involving Madrid's president Isabel Díaz Ayuso's partner. Sánchez called Ayuso's partner a "confessed criminal" and argued that Ayuso should resign. He also criticized the PP for demanding accountability while ignoring their own issues.

Economy:

• ECB Cuts Interest Rates: The European Central Bank (ECB) cut interest rates by 0.25 points to 3.25%, the second consecutive reduction. This decision aims to stimulate the Eurozone economy, which faces weak growth and the possibility of recession in Germany. The ECB cited slowing inflation and weak economic indicators as reasons for the cut. Analysts predict another rate cut before the end of the year.
• Impact of Rate Cuts: The interest rate cuts are expected to further reduce mortgage payments for consumers with variable-rate mortgages. However, savers are likely to see lower returns on their investments, prompting them to explore riskier options for better yields.