BBVA in 2012
BBVA in 2012
BBVA in 2012
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Environmentand <strong>BBVA</strong> position<strong>in</strong>gThe economic backgroundIn <strong>2012</strong>The global economy has grown just over 3%, a year-on-year rate which is slightly lower thanthe average for the last three decades (3.5%). This slowdown <strong>in</strong> world growth is largely due tofurther flar<strong>in</strong>g up of f<strong>in</strong>ancial tensions <strong>in</strong> Europe. The rest of the slowdown has been caused bythe contagion from Europe to other geographical areas, limited support from demand policies <strong>in</strong>emerg<strong>in</strong>g markets and uncerta<strong>in</strong>ties about how to def<strong>in</strong>e such policies <strong>in</strong> the United States.The slowdown has<strong>in</strong>tensified <strong>in</strong> <strong>2012</strong>12 Many events have occurred <strong>in</strong> <strong>2012</strong> <strong>in</strong> Europe which have triggered unease <strong>in</strong> the markets.Firstly, uncerta<strong>in</strong>ties about how to reach fiscal austerity targets without hamper<strong>in</strong>g growth.Secondly, uncerta<strong>in</strong>ties aris<strong>in</strong>g from the state of the f<strong>in</strong>ancial system <strong>in</strong> certa<strong>in</strong> countries, whichis subject to pressure due to lack of growth and suspicion spread<strong>in</strong>g about the solvency ofthe public sector. Lastly, the degree of commitment of certa<strong>in</strong> countries toward the commonEuropean project, which at some po<strong>in</strong>ts dur<strong>in</strong>g <strong>2012</strong> has prompted fears of a break-up of theeuro (fears which were later dispelled).Europe is on theroad toward closereconomic andmonetary unionHowever, <strong>2012</strong> has also been a year marked by essential steps taken to resolve the f<strong>in</strong>ancial crisis<strong>in</strong> Europe. The commitment toward the euro has been re<strong>in</strong>forced, once the Greek elections ledto the formation of a government which took a responsible view of the adjustments neededfor it to rema<strong>in</strong> <strong>in</strong> the common monetary area. Secondly, peripheral countries have carried outmajor structural reforms. Thirdly, significant process has been made <strong>in</strong> restructur<strong>in</strong>g the f<strong>in</strong>ancialsystems which were hardest hit by the crisis that began <strong>in</strong> late 2008 -such as Spa<strong>in</strong>’s- with theapproval of a credit facility for the recapitalization of the most vulnerable <strong>in</strong>stitutions. Lastly,Europe has also worked on its governance, with the establishment of a fiscal agreement, thesett<strong>in</strong>g-up of the European Stability Mechanism (ESM), the first steps taken toward bank<strong>in</strong>gunion, and (a decisive factor) the commitment of the ECB to do whatever is necessary toEnvironment and <strong>BBVA</strong> position<strong>in</strong>g35