Spain and Portugal Want More Colonial Business

Spain and Portugal’s plight dominates Ibero-American meet | Reuters.

Spain Begs Former Colonies For Bailout | ZeroHedge.

The Iberian countries are desperate for additional economic growth and are openly lobbying their former colonies for more business opportunities.

Spanish and Portuguese companies already draw a significant portion of their revenues from Latin American and will continue to do so, but while there will be individual success stories here and there the current lobbying will not amount to much.

New business opportunities require financing, and PIIGS banks are on the ropes shrinking rather than growing their lending to increase capital. This lack of financing will not allow Iberian companies to begin new projects.

Additionally, Spain and Portugal are becoming increasingly unreliable business partners. Besides the banking woes, violent protests and strikes are increasing. No one wants to do business with unstable regimes.

Lastly, the best way to obtain business is not through lobbying foreign governments. Offering superior products and services trumps these types of entreaties, but when your economy is uncompetitive you must resort to grand gestures of salesmanship.

The last reason is why Spain and Portugal will never grown their way out of their economic problems.

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