The decisive graph that Rajoy showed and that has convinced Merkel

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money saved in Spain with the harsh cuts has 'evaporated' due to the increase in the cost of debt It was one of the key moments of the day. And one of the aspects that most surprised Angela Merkel during the meeting she had yesterday with Mariano Rajoy at La Moncloa. The President of the Government showed the German Chancellor how the savings from the harsh cuts in Spain have 'vanished' due to the increase in the cost of debt. 0 Merkel stated yesterday, after her meeting with Rajoy in Moncloa, that she was “impressed” by the “intensity” of the reforms undertaken by the Spanish Government to recover growth and job creation. And, as El Confidencial Digital has learned from government sources, the president pulled an unexpected 'ace' out of his sleeve - which he showed to Angela Merkel - to convince her of the suffocation that Spain is suffering due to the pressure of the markets.

Savings, evaporated by debt During the meeting, Rajoy demonstrated to the German Chancellor, through a graphic document , how the savings from the reforms approved in Spain have been absorbed, in large part, by the costs of the increase in the price of debt . An aspect that especially surprised Merkel , according to people close to the meeting. The objective was to ensure that Germany does not insist on its efforts to stop the mechanisms that the ECB plans to implement to  Middle East Mobile Number List  purchase the debt of countries with problems, and that can contribute to alleviating the escalation of the Spanish risk premium. The interest on the Spanish debt has doubled Spain has seen the interest on its ten-year debt double in the secondary market, going from 3.7% in to more than 7% at which it was quoted until a few days ago. Rates even reached 7.5% at the end of July , which was a historic high since the creation of the euro.



Meanwhile, German interest rates have been reduced by half, reaching unprecedented levels of 1.16% last July. The businessmen also left their message to Merkel The great Spanish businessmen also did not want to waste the stay in Madrid of the 'almighty' Merkel to leave her a fundamental message , and inform her of one of their main concerns. According to business sources to which ECD has had access , during the Spanish-German summit in Moncloa they personally privately conveyed to the chancellor one of the most serious problems that Spanish companies are going through right now, which is the lack of credit . And they told him that how was it possible that while in Spain getting a loan is now an impossible task, money is cheaper than ever in Germany ? We must not avoid the protests The sources consulted explain that the Government was not concerned, at any time, by the protests that were held yesterday in Madrid against Merkel's visit . Quite the opposite: the slogan was raised that they should not be avoided .