Of course there is no real sign of economic recovery. Nowhere!
The state of crisis is constant internationally and in the case of some countries things are only getting worse. For many businesses it is now just a question of who has the more fat on the ‘body’ of their existence and needed to survive the freezing temperatures of dwindling markets, non-existing finance etc., etc…
Companies and the economy at large have gotten into a bad circle:
The credit squeeze… No available financing for new acquisitions or projects. Government spending is down. International institutions giving their best advises, and national governments trying to help a bit, but are not willing to or do not have the means to follow through.
In the example of Spain, the government introduced a new law this summer, imposing shortened maximum payment times on invoices, in order to alleviate the need for quicker cash-flow in companies. However, public entities, government, ministries and municipalities have already broken the law, delaying payments far beyond the limits set by that law. So, again, (private) suppliers are getting choked short of cash and incomes to cover their own costs…
Do you think the authorities will sanction these inflictions of the law? No, don’t think so! And in view of the laxity, private companies are again communicating longer payment times on invoices to their own companies.
Goodness Gracious, what a bad, bad vicious circle!!!