Spain’s hidden euro revolt: Spanish families hoarding 1.5billion worth of pesetas in homes

EU at ‘crunch point’ over future of the Eurozone says expert

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Spain joined the eurozone and adopted the euro over 20 years ago but Spanish people are still holding onto their old national currency. While some are holding the currency for nostalgic reasons, some businesses are still accepting them.

It comes after the Bank of Spain set a deadline of June 30 to exchange pesetas for euros.

The old coin can also be invested in charitable causes or used for cultural events.

In a blow to the EU’s beloved monetary union, cinemas in Madrid are still accepting the old coin for the purchase of tickets.

Nacho Marugán, director of Wash Comics, is also allowing people to purchase comics he distributes to raise money for charity.

Jesus Paino, the owner of a newsstand in the Spanish capital, told Euronews he was also accepting pesetas at his shop.

He said: “People of all ages come here.

“There are people from my generation – and they come from all over Madrid.

“People have had to take the car just to come here to spend their pesetas.”

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Over 20 years after it was created, the eurozone is still facing hurdles.

In its latest quarterly forecasts, the European Commission has predicted the EU’s gross domestic product would increase by 3.7 percent this year, down from its previous forecast of 4.2 percent.

Its economists warned the EU’s economic recovery is directly linked to the bloc’s ability to successfully deliver doses of Covid jabs to member states.

They said the downward revision in their winter forecast was “related to the evolution of the pandemic and the pace, efficiency and effectiveness of vaccination rollout”.

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The Commission said it was forced to downgrade its economic forecasts because of the continued “uncertainty and risks” surrounding the latest wave of COVID-19 infections battering the bloc.

“In terms of negative risks, the pandemic could prove more persistent or severe in the near-term than assumed in this forecast or there could be delays in the roll-out of vaccination programmes,” its report said.

“This could delay the easing of containment measures, which in turn affect the timing and strength of the expected recovery.

“There is also a risk that the crisis could leave deeper scars in the EU’s economic and social fabric, notably through widespread bankruptcies and job losses.

“This would also hurt the financial sector, increase long-term unemployment and worsen inequalities.”

The Commission’s winter forecast did not price in the threat of further delays to the bloc’s vaccination roll-out.

Analysts at German finance giant Allianz recently warned Europe’s Covid jab scheme was facing a “five-week delay”, which could cost its economy €90 billion if left uncorrected.

Economy commissioner Paolo Gentiloni said: “Europeans are living through challenge timings.

“We remain in the painful grip of the pandemic, its social and economic consequences all too evident.”

The euro is expected to grow 3.8 percent, a faster rate than the wider EU economy.

The Netherlands (1.8 percent), Germany (3.2 percent) and Ireland (3.4 percent) are all forecast to grow less than the average prediction for the EU.

In contrast, the main recipients of funds from the bloc’s €750bn recovery fund – France (5.5 percent) and Spain (5.6 percent) – are expected to make bigger gains.

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