Business Over Tapas (Nº 178)

Editorial:

News is about the corrupt politician, not the honest one. News is about the failed business, not the successful one. News is about accidents and death and misery and protests rather than focusing on the every-day joys of life; and news is about costs and prices and tariffs and shortages. Perhaps that’s why we like football: so easy to learn and blessed as it is with its regular if fleeting triumphs.

News about Spain is full of such disasters, small and large. But Spain, this country we love, is also about joy and wonders and pleasure and culture and gastronomy. We don’t see seventy two million tourists visiting Spain for nothing. Here’s an inspiring government video promoting Spain called ‘Everything you expect and much more than you can imagine’ and here’s an excerpt from an article called ‘Spain, ranked 12th for global presence in 2015’ from Marca España: ‘Spain is playing an increasingly important role in the international scene, as shown by the latest update of the Elcano Global Presence Index, reflecting a positive internationalisation trend over the past 25 years...’.

Spain is indeed a fine place to live ... And now, here comes the news...

Housing:

How much does it cost to sell your property? El País goes through the taxes, plusvalías and notary fees here.

From Property Wire: ‘Mixed messages about the recovery in the Spanish property market continue but some of the ups and downs could be down to a court ruling on a controversial mortgage ground clause. The latest data from the National Statistics Institute show that the increase in property sales slowed to 1.1% in July compared to the same month in 2015 and down from the 19.4% recorded in June, a fall of 10.2%...’.

The Sur in English asks: ‘Are property owners on the Costa complying with the new holiday rentals legislation? The new rental law that came into effect in May of this year is proving unpopular with some foreign owners on the coast?’. Well, are they? An excerpt: ‘...The Junta de Andalucía estimates that around 80,000 private homes with some 400,000 beds are offered as tourist rentals in the region, and this new law is intended to bring to light illegal practices and unfair competition. The legislation has received the thumbs-up from the local hotel sector, but some property owners claim they have been forced to stop offering their properties for short-term rentals, because they simply cannot afford to comply with the conditions...’.

A new problem for property-owners, absent from their homes for a short of long spell: professional squatters. These charmers, working for criminal gangs, will break in, change the locks and stay until a revolutionary tax is paid them by the owners to leave. Well, it beats going through the long agony of the Spanish judicial system... A Barcelona expert in housing says: ‘..."the phenomenon has grown tremendously. Each year there are about 15% more reports of this practice, and always in cases that are not by necessity, but simply to extort money from the owners. This is already standardised: they have their lawyers, know what kind of house to choose, who are the owners ... In the end the owner has no rights; he goes on his holiday, finds his house occupied on his return and will have to prove it is his."...’. El País has more.

Tourism:

An interesting and full study on Andalucía and its successes in tourism comes from Hospitality Net here.

The choices to travel between Madrid and Barcelona include the Puente Aereo and the AVE: the ‘air bridge’ and the high-speed train. Now, a report from Preferente says that two thirds of passengers are choosing the train over the plane.

Too many tourists can cause ‘turismofobia’ says ‘Europamundo’: quoted by Agent Travel.

Finance:

‘Spain is still an attractive bet for foreign investors’, says The Corner noting that ‘...both industrial and private equity investors are interested in Spanish companies: the prices are attractive, the good ones are highly internationalised and others need fresh cash to restructure their balance sheets and embark on new projects...’.

The disastrous story of Bankia, ‘the largest fraud in Spain’s banking history’, a marriage of seven cajas (Caja Madrid, Bancaja, Canarias, Ávila, Laietana, Segovia and Rioja) here. The lengthy article notes in passing that over 75,000 banking jobs have been destroyed in Spain since the beginning of la crisis. A six-minute video on YouTube called ‘La verdad sobre Bankia. El mayor engaño de la banca en España’ is here.

The stricken Banco Popular is to close 300 offices across Spain and to let go 20% of its workforce (around 3,000 people), says Bolsamanía here.

Spain’s public debt is now standing at 100.5% of its gross domestic product, translating to 23,816€ per citizen. Story at Vozpópuli.

The Madrid city government of Manuela Carmena has reduced the crippling municipal debt over the last year by 20%, around 1,000 million euros. The story is here.

From an article at The Olive Press called ‘How Spain’s tax system is undermining the property market and its would-be buyers’: ‘The situation in Spain is fragile, what with Brexit, the continuing dictatorship of Rajoy and the out-of-control national and regional debts. Tourism, residential expats and short stay are a major contributor to the Spanish economy that appears to carry on regardless. However, it’s ‘on a shaky peg’...’.

A study on the AVE at Bez says that progress is severely hampered ‘by the lack of a government, by corruption and by bad habits displayed by the builders’. A map shows the planned bits in blue.

Politics:

There are just three weeks left to find a government before fresh elections for Christmas must be announced (although, look, the parties are all agreed to hold the elections a week earlier than they must – for December 18th).

Local, national and international agreements are on hold, says El País in English as ‘Spain has been under a caretaker government since late last year, when an inconclusive general election was followed by months of fruitless negotiations, then another election and more fruitless talks to form a government ... “The continuity of the caretaker government [for nine months now] is having increasingly serious consequences for Spain’s international projection, derived from an institutional deadlock that makes our country look like a permanent lame duck,” warns a report by the Spanish Foreign Affairs Ministry, to which EL PAÍS has had access...’.

‘I have complete faith in the honesty of José Antonio Griñán and Manuel Chaves, says Susana Díaz here. The two ex-presidents of the Junta de Andalucía are facing severe sentences for their alleged connection to the ERE scandal. Perhaps surprisingly, Ciudadanos accepts that ‘there was no wrong-doing on the part of Susana Díaz in the ERE...’.

El Boletín says that the PSOE supporters are sick of Susana Díaz (rather than Pedro Sánchez). Are the militantes at odds with the hierarchy?

Pedro Sánchez has called for a meeting of the Federal Committee for October 1st, just after the results are in from the Galician and Basque regional elections this Sunday September 25th. The meeting is considered normal following regional elections, if tactical towards the national deadlock.

Who will fall first, Rajoy or Sánchez, asks Zona Crítica.

Podemos is facing its own difficulties, as The Guardian reports in the ‘Battle for the heart and soul of Podemos as Spain’s political deadlock continues’. The Podemos supporters (known by everyone else as the ‘podemitas’) are divided in their loyalties between the politics of Pablo Iglesias and his Nº 2, the disarmingly youthful looking Iñigo Errejón. The now rather visible split is also discussed in El Diario here.

‘Entitled ‘Islamic State in Spain,’ the Elcano Royal Institute has published a report in which it analyses the profile, radicalisation methods, motivations and type of involvement of the prisoners linked to Jihadist terrorism in Spain between June 2013 and May 2016. This work forms part of the study of global terrorism which the institute is carrying out in cooperation with the Ministry of Foreign Affairs and Cooperation and the Spanish National Intelligence Centre. Despite the fact that Spain is not one of the most affected European nations “either in absolute or relative terms,” as the president of the Elcano Institute, Emilio Lamo, points out “Spain is not immune to the Jihadist mobilisation promoted by the Islamic State.”...’. From Marca España in English here.

Corruption:

Price-fixing. It seems that many different sectors are being found to be colluding over prices to the public. A video and report on the cartels at LaSexta here.

Catalonia:

Headline from Vilaweb (English version): ‘Spanish government won’t file criminal complaint against Catalan Parliament President – for now. The Court, however, is now studying whether this reform is constitutional or infringes upon the principle of separation of powers, after the appeals filled by the Catalan and the Basque Governments’. Although the Government has warned Catalonia that they will not be able to participate in the popular TV show Gran Hermano (‘Big Brother’) following independence from Spain.

Courts

A resume of the case against Francisco Camps in the ‘Taula Inquiry’ appears in El Diario here. ‘Bribery affected the entire Valencian Government’ and ex-President Camps allegedly operated five secret bank accounts, says the news-site.

A senior PP mayor, party leader and president of the provincial diputación in Almería, Gabriel Amat, says he is confident that a judicial inquiry into his activities will prove him innocent of any wrongdoing.

Media:

Two years after the AEDE Canon (Google Tax) became law in Spain, how are things doing? A useful article at Ticbeat.

Various:

The Mayoress of Madrid wants to change the name of a street honouring the Francoist founder of the Legión – Spain’s crack military corps. La Legión (and many others) are understandably not happy about this. Currently, it’s called ‘Calle del General Millán Astray’.

Am I a Permanent Resident? Ask Citizens’ Advice here.

Here are the greatest of the ruined or never-finished sports pavilions in Spain. Ah, the waste!

We use an average of 133 plastic bags each year. In Denmark they manage with just four. A report with video from El Español on the European plans to reduce the use of plastic.

The Atlantic beaches in northern Spain are dirtier, apparently, than the Mediterranean ones. So says the RTVE here in an article which shows that there is more fecal matter and e.coli to be found in the northern waters. Not that the Med waters are in great shape either (here).

So, where do tapas come from? The Telegraph has some ideas here. The article is sponsored by a Spanish beer company.

And, while we are on the subject, what is torrefacto coffee? Answer: it’s a nasty invention. ‘...“Torrefacto is the practice of adding sugar to coffee beans during the roasting process,” explained Patricia. The sugar burns and the beans wind up coated in a shiny black film.

This glossy coating protects the beans from oxidisation and torrefacto was originally a preservation method. But there are side-effects. The process makes the resulting drink much darker and more bitter. It also masks the true, rich flavour and aroma of good coffee...’. The article comes from a blog called Madrid Chow (Where to eat and drink in Madrid) here.

‘...We are the reverse side of the coin that bears the Polish plumber’s face on its front. Logic dictates that everything that happens to him in the future must also happen to us, and if the British are already showing hatred towards European immigrants, it is easy to imagine that others might hate us in return...’. Giles Tremlett writes of ‘Brexpat Blues’ at Prospect.

See Spain:

Which one to choose: ‘Mallorca and Ibiza are one of the most popular choices for a holiday in the Mediterranean. Both have much to offer but which one to choose? Some points helpful in making decision...’. A blog entry from Kate on Travel here.

Finally:

From YouTube: ‘Spanish Lady’ - Triona and Maighread ni Domhnaill (For JA Sierra).