Editorial:
How easy is it to invent news, I wonder? El Mundo on Tuesday leads with two statements, that 70% of Spaniards think that the two previous presidents of Andalucía, Chaves and Griñán, both knew about the massive ERE fraud; and that 85% of Spaniards think that the Partido Popular paid out extras in brown envelopes to senior party members. Both stories perhaps true, but not merely because we all believe it. After all, we used to think the world was flat...
Housing:
The Sur in English rates residential tourism highly, claiming that the foreign residents account for 12.5% of the GDP of the province of Málaga. It makes for sensible reading. - 'There has been a great deal of talk about residential tourism, its importance to the economy, its controversial aspect with regard to the hotel sector and urban development and its impact on the property sector, but there has also been a lack of figures to show what this movement of foreign tourists means to the Costa del Sol.
These people live on the coast for prolonged periods or stay for more than 60 days in properties in which they have invested, in some cases, absolute fortunes. This type of traveller, or investor, was hardly taken into account until recently. In fact, businesses in the residential tourism sector are calling on the administrations to be more aware of this flow of tourists and they say there is a need for a taxation system which will keep those who have already invested here happy and attract new foreigners who want to buy a house in this area'...
But, there is still much room for political change regarding the foreign properties that, with their owners, bring so much money (and jobs) to Spain. Take the recent protest in Alcaucín (Málaga): 'On Tuesday night 16th December over 100 residents of Alcaucín and members of Save Our Homes Axarquia (SOHA) demonstrated against the demands of the Junta de Andalucía to revoke the licences of 16 houses in the town.
An anonymous resident of Alcaucín has denounced a total of 66 houses. The Junta is putting pressure on the councillors of Alcaucín to revoke the licences of 16 of these houses or face legal action and potentially lose their jobs.
The demonstration coincided with a special council meeting to discuss the Junta’s demands. Before the meeting Councillor Mario Blanke address the crowd in the square outside the Ayuntamiento. Blanke asked “Why does the Junta want to punish the home-owners and not the perpetrators of these crimes?” Waving various documents in the air he continued. “We’re not talking about houses that were built outside the law. Each and every one of the homes had and has all legally required permits.”...'. From the SOHA website.
Indeed, January 8th is the anniversary of the demolition of Len and Helen Prior's house in Vera, Almería. This always supposes the question for the Andalucians: 'Who won?'. I've written this up on Spanish Shilling here and (en castellano) at El Indálico here.
Office buildings, at least, are attracting foreign investment it seems: 'A grand yellow-brick edifice in Madrid's poshest shopping district, the ABC Serrano mall is a Spanish symbol of tradition and elegance. Only it isn't Spanish any more.
Like shops, offices, and apartments across Spain, it has been snapped up by foreign buyers, who are streaming back a year after economists were warning the country faced ruin.
"Since this summer there has been investment fever in Spain," said Jose Luis Ruiz, an independent real estate consultant.
"There are dozens of investment funds from all the major countries, such as Americans, Germans and British, who are focussing on Spain."...'. From Google News.
Over in the Region of Madrid, they are considering stopping private short-term rentals (the hotels evidently need the money...!): 'The Government of Ignacio González is preparing a draft on holiday rentals that will prevent local people from turning their houses into hotels with advertisements on the Internet. It is estimated that there are some 8,000 of these accommodations in the capital. 'The rule will simply increase the amount of illegal activity', says idealista.com'. The story at Vozpópuli.
An earnest site called Pueblo Social is looking for enthusiasts to join them in (re-)building an abandoned village called Armejún (Soria) as an eco-pueblo. Can I pass on your name? Wandering around on this site, I found a map with all of Spain's 'abandoned villages'.
Tourism:
Tourism was up last year, as expected, with 57.6 million foreign tourists visiting Spain up to the end of November. That's 5% better than in 2012. How accurate these figures are is doubtful, as many foreigners pop in and out of Spain daily (Gibraltarians), or regularly (business-people), or are en route to a third country (airport controls), or they use land frontiers (no controls) or they are here all year (not listed). The story (and a picture of 'tourists') at El Mundo.
Around 80% of Britons managed some holiday away from home in 2013, and 46% of British holidays overseas were with a 'package tour', according to Nexotour. Spain was the most popular destination for Britons, followed by Greece, the USA, France, Cyprus, Italy, Turkey and Tunisia.
Finance:
'Billionaire financier and philanthropist George Soros has bought a 3-percent stake in heavily indebted Spanish construction firm FCC from the group’s founding family. Last week, Esther Koplowitz, whose father founded the company, sold 3.8 percent of her majority stake for 15 euros a share, amounting to 72 million euros. Soros is the second internationally renowned investor to take a stake in the company in recent months, following Microsoft founder Bill Gates’ purchase in October of nearly 6 percent...'. From El País in English. 'Philanthropist'? Wikipedia notes that Mr Soros '...is known as "The Man Who Broke the Bank of England" because of his US$1 billion in investment profits during the 1992 Black Wednesday UK currency crisis'.
An article in El Mundo discusses the number of funcionarios (public employees) in Spain, and their cost to society: In the final quarter of 2013, the number of public workers was 2,830,600, a similar number to the year 2004, but the cost to the Public Purse has soared from 84,595 million per annum to 121,000 million euros, a rise of 44%. The Private Sector has faired less well, says the report, having lost 1,200,000 jobs in the same ten year period.
'The consortium led by Spanish builder Sacyr that has been contracted to widen the Panama Canal has asked the administrator of the waterway for an advance of 400 million dollars (293 million euros) in order to be able to continue work on the project, while the two sides try to resolve a dispute over cost overruns that the group estimates at 1.6 billion dollars (some 1.2 billion euros)...'. From El País in English.
Corruption:
'After months of accusations and counter-accusations, it’s finally happened and a Judge has ordered that the Infanta Cristina, King Juan Carlos of Spain’s youngest daughter, be prosecuted for tax evasion and money laundering.
The accusations come after her husband's long court case over allegations that he used his royal connections to siphon millions of euros from the public coffers of the Balearic Islands, together with crooked politicians, in a case called the Caso Noos...'. From David Jackson. Well, maybe, and then of course, maybe not!
Politics:
'The Minister of the Economy, Luis de Guindos, has said that in 2014 there will be a net creation of employment which will be "even higher" than that projected in September when the General State budgets were prepared. In an interview with Cadena Ser, the Minister recalled that, only three months ago, it was clear that there would be net job creation in 2014 but “the numbers will now be even better", he said...'. Story at El Ideal.
From The Guardian: 'Spain's conservative government has approved an abortion law that rolls back current legislation permitting the procedure without restrictions until the 14th week. Justice minister Alberto Ruiz-Gallardón said on Friday that abortion will only be allowed in the case of rape or when there is a serious mental or physical health risk to the mother. Accredited foetal deformities that would endanger a child's life if born will also be accepted.
He said 16- and 17-year-olds will once again have to obtain permission from their parents to have an abortion. The bill, which must be approved by parliament, has been vigorously opposed by most opposition parties and women's groups across the country...'. Indeed, several senior PP members are clearly against it, and a slightly unfair report surfaced on Wednesday reporting on an abortion undergone by a leading PP politician's wife back in 1988.
On Thursday morning, El Huff Post reported that Rajoy was having second thoughts. 'The President of the Government, Mariano Rajoy, will change the law on abortion. Following the social alarm and mobilisation of all the opposition groups and even part of the Partido Popular, the President has promised to improve the text of the draft law on abortions.
At yesterday's meeting of the leadership of the PP, the President pledged to "talk to everyone" and improve the text, reports EFE.
In addition, Rajoy asked the Minister of Justice, Alberto Ruiz Gallardón, to listen to the senior politicians in the party, known as 'the Barons', to water down the bill'...
The left-wing Público reports that the power companies here have powerful friends... Across the boards of the main power companies of Endesa, Iberdrola, Hidroeléctrica del Cantábrico, Red Eléctrica, Enel and Gas Natural Fenosa, we find some famous names in politics: José María Aznar (who apparently gets around 200,000 euros a year from Endesa), Felipe González (claims 126,000€ gross per year from Gas Natural), ex-minister Elena Salgado, current Minister of the Economy Luis de Guindos (left the Board of Endesa in 2011 to take up his ministerial job), Miquel Roca, Pedro Solbes, Narcís Serra, Miguel Boyer, Ángel Acebes, Manuel Marín, José Luis Olivas and Ana Palacio all receiving honourable mention in the article.
Catalonia:
No doubt the biggest threat to Spain in 2014 will not be the economy, or unemployment, or whether the Royal Family is still relevant, but rather whether the Catalonians (followed perhaps by the Basques, the Galicians...) will manage to break up the country entirely. Catalonia has said that it will hold a popular vote on self-determination on 9 November 2014. Voters will be asked a two-part question:
Do you want Catalonia to be a state?
If so, do you want Catalonia to be an independent state?
Justification, rationale and progress in a memorandum from the Catalonian Presidency, in English, here.
A letter from the Catalonian President to the Chancellor of Europe asking for support for the Catalonian seccession, in English, here.
White Elephants:
From David Jackson: 'Jaén has finally mothballed its tram system, which cost the city 120 million euros, never carried a paying passenger, and in fact, never ever started running past initial trials. And nobody has lost their job, or even been censored. Amazing, isn't it?
It took a decade to build it, ripping up streets and laying lines through the city. It was finally finished in 2011, and the PSOE / IU city council started running tests, and announced, in the most idiotic decision ever, that it would be “free for all”'...
The architect Santiago Calatrava is facing legal action from his native city of Valencia. '...The dazzling City of Arts and Sciences, a sprawling space-age complex that transformed the centre of the city of Valencia when it was inaugurated eight years ago, is already falling apart and regional authorities have said they will sue the architect responsible.'... From The Telegraph.
Essay:
A long piece worth an afternoon's reading is at a site called El Problema son las Autonomías ('we can't pay 17 parallel administrations and 520,000 scammers'). The thrust of the argument is clear enough, the astonishing waste (and political disharmony) caused by the autonomous regions in Spain. A taste: '...Spain already has the highest rate of poverty of the entire European Union (above Greece or Portugal). Spain, which is also the country of the European Union with the highest rate of unemployment (more than Greece and much more than Portugal) and the third highest in public deficit (behind Greece and Ireland), has (as of 11-07-2012) the fourth highest taxes in Europe (behind only Belgium, Denmark and Sweden). However, unlike the latter three countries, much of our taxes do not go to sustain the Welfare State, nor to help overcome the crisis, but to maintain autonomous communities which only benefit the political castes...'
Various:
In an opinion piece, The Costa Almería News says that 'The Junta is not listening': 'It is perhaps telling that the issue most on the minds of Junta officials last week has not been the fallout over demolitions in the province but the scrapping of the Seville-Almería air route.
Ending the service will no doubt put a crimp in the plans of many a regional government politician from Seville, who will be forced to look for an alternative method of transport whenever they are on a shindig to Almería'... In Almería, we think that the authorities in far-off Seville have forgotten all about us. Perhaps they have.
'Joaquín Almunia was being spied on by the British secret service in 2008 and 2009, when he was European Commissioner for Economic and Monetary Affairs. New information based on the leaked documents by the former agent of the NSA Edward Snowden and published jointly by 'The Guardian', 'Der Spiegel' and the 'New York Times' show that European Government communications were intercepted by GCHQ, the main collaborator of the NSA in its massive espionage around the world...'. Almunia, briefly the PSOE leader and candidate for the Spanish national elections (he lost to Aznar), spied on by the British? The news doesn't play well in Spain. Story at El Mundo.
The King of Spain apparently confided in 1983 to the then British ambassador Sir Richard Parsons that Spain didn't 'really want the return of Gibraltar, since it would cause the immediate call from the Moroccans for Ceuta and Melilla'. El Mundo is suitably shocked.
The Minister for Education, the infamous José Ignacio Wert, has introduced a new education law, the 'Lomce' which, among other things, rules that history lessons must be the same across Spain. No more local versions of 'they did this and we did that' to inculcate intolerance and nationalisms... Good thing too!
'Most ex-pats living in Spain are anxious to do their best to fit into their local communities, as well as doing their best to abide by the law. However, sometimes Spain does not make it easy for ex-pats to abide by the law, and the issue that I raise here is a good example.
How many ex-pats in Spain remember that rather useful identification card that was awarded to those ex-pats who could meet the residency requirements a few years ago? This credit card size piece of identification not only carried the all important identification number and fingerprint, but a photo as well, which meant that it could be used for identification purposes in shops, banks, dealing with the authorities, as well as internal flights...'. A nostalgic (and rather badly-written) piece for the good old days from The Leader. But, reading further, it seems that our 'residence cards' could be making a return.
How much can you drink without getting into trouble with the traffic police? Not much, of course. El Huff Post shows how many drinks we can have, and it's not much (1.5 beers or two glasses of wine for men, one beer or 1.5 glasses of wine for women). No wonder the bars are closing in the countryside... In the city, there are taxis, buses, a metro, properly lit pavements and a bar on every street corner anyway. In the country, there's just that one lonely road home...
There were six thousand demonstrations across Spain last year, according to Periodísmo Humano, which wants to 'Break the silence over what's happening in Spain', here with an article about the new authoritarian rules of 'La Ley de Seguridad Ciudadana' which are now in force. La Nueva Tribuna agrees: 'The freedom of expression and the right to demonstrate are not just empty concepts, they are fundamental human rights enshrined in international treaties and declarations and the Spanish Constitution also recognizes and protects the Right of Assembly and peaceful demonstration, as well as "to freely express and disseminate thoughts, ideas and opinions by word, writing or any other means."...'
The Spaniard who set up a system of solar panels '...with the idea of selling his excess electricity. “It seemed so safe,” he said recently. “It was a government guarantee.”
But the Spanish government has changed its mind. It plans to pay less, a lot less. Under legislation that goes into effect this year, it will drop its per-kilowatt-hour payment system altogether and effectively impose retroactive cuts in payments. It also plans to make solar power producers pay a charge on electricity they generate and use themselves, a measure that angry protesters have named the “sun tax.”
Spain has good reason for wanting to take action. It is facing a growing deficit — about $40 billion now — because it has never passed on the true cost of producing energy to its consumers, a problem that has ballooned with the economic crisis. If it does not do something, that deficit will only grow, experts say...'. Found at The New York Times.
'The number of deaths on Spanish roads has fallen to its lowest level since the 1960s. It is the tenth year in a row that the number of fatal accidents has fallen across the country. Official figures for 2013 released by the DGT traffic authority reported that 1,128 people had died on Spanish roads last year'... From The Olive Press.
The Spanish Economy
By Andrew Brociner
Family Policies: Spain and Some Comparisons
We spent some time discussing the brain drain and the important economic consequences of this phenomenon. With this exodus taking place in Spain, a higher fertility rate could compensate this trend. But, the fertility rate in Spain is on a downward trend, and with the exception of a temporary reversal during the boom years, it has resumed its trend, as can be seen in the graphs below.
It is well known that high unemployment and fertility rates are very significantly inversely correlated and with the perspective of high unemployment, and especially, very high youth unemployment – for many years to come – the hopes of higher fertility in Spain are quite slim.
There are, of course, policies which could be adopted to favour higher fertility rates, but Spain does not have these types of policy in place. Spain has 16 weeks of leave for the mother and only 15 days for the father. Let's take a look at some countries by way of comparison.
Nordic countries have well-established family policies with generous maternal and paternal leave. This policy favours larger families as the state supports them. In Sweden, for instance, men and women can take up to 240 days leave – each. It is mandatory, in fact, for fathers to take at least two months paternity leave, and there are discussions going on about raising this minimum to three. The Swedish government pays 80% of a parent's salary for a maximum of 13 months. About 72% of women work in Sweden, at least on a part-time basis. In the Nordic countries of Iceland and Norway, the percentage is even higher. This is more than in most countries. And so, even if more women in these countries work, the fertility rate is also higher than in most countries as the leave benefits in these countries are so generous.
This paternity leave policy goes back in Sweden to 1974, when the aim was to get more women to join the work force. But now, it is a reflection of the more equal status between men and women there. In this way, women are not seen at a disadvantage in the workplace. Moreover, sharing childcare responsibilities is not only more equitable at home as well, but creates a closer relationship between fathers and children that northern countries would not relinquish.
Norway has 13 months of maternity leave at 80% salary with a compulsory minimum of 9 weeks for the mother and 12 weeks for the father. Moreover, the system is very flexible, enabling both parents to choose from a mix of leaves for both partners and to extend the leave if they opt for extra unpaid leave for another year for each partner. This generous funding combined with the flexibility of the system seems like the right approach to embrace the task of raising a family, especially as it gives both parents the liberty to choose what suits them best and, in this way, while state funded, does not seem government determined.
This is a matter of ideology and policy rather than income. In the US, for instance, a high income country, but with a very different ideology, parental leave is one of the least generous in the world. Employees of small companies, for instance, do not get any paid leave at all and this covers about 40% of the workforce. Unfortunately, it is often the higher placed employees of large companies which get the most paid leave, a group which can afford care privately anyway. In the US, paternal leave is very much a question of the company you work for, instead of being covered by a government policy. And while there are some differences at the state level, there is still a lack of policy at the national level. For all its rhetoric about the importance of family values, the US does not back up what it says with a national policy. The absence of this type of policy leaves families forced into traditional roles and women at a disadvantage in both the workplace and at home, to speak nothing of the children, in an age which is different from the 1950s.
About 63% of women in the US with children from 3 to 5 work, as do 54% with children under 3. It is not that US women are not in the workforce, therefore, but their lives are difficult as they have to juggle work with childcare. Private care is expensive in the US and again, there is a large divide between what the rich can afford and the poor cannot.
And just to reinforce this idea, while we are on the topic of ideology, the US is the only country which does not provide mandatory paid holidays or vacations. This too depends on the place of work rather than the government. About 25% of the workforce in the US does not get any paid vacation or holidays at all. And again, it is the low-wage workers and those working part time or for small companies that fare the worst. There is not much in the way of equality in the US.
In France, there is a state-run nursery or crèche, which is there to take babies from a young age, although this works by application and there are a limited number of places available. After that, France also has a free public pre-school programme, or maternelle, available to all, which is for children between the ages of 3 and 5. There has been a politique familiale in France since the 19th century, which came from giving shelter to children from poor working-class families, which political parties of all colours have since endorsed. The commitment to helping families raise children is part of the welfare state and is something which has been lacking in the US. This policy is underpinned by one of the French values of égalité, which again, is far from evident in the US.
It is no wonder, then, that fertility rates can differ among countries. It is not the only factor which explains the difference, but it goes a long way. As we have seen, the fertility rate in Spain is decreasing and is far below the replacement rate; that is, the number of children which would keep the total population constant. We can see Spain's fertility rate compared to that of some other countries in the graph below.
Of course, these generous state-funded programmes come at a cost. And as we have seen in a previous issue, Spain's debt is constantly rising and already on an unsustainable trend. It is also a time of austerity. It is unlikely, therefore, that the government would install family-oriented programmes along these lines, but it would be timely given the current economic crisis and the unemployment situation. Such a programme would at least mitigate the fertility trend, help families at a time of need, favour more families to be formed and counter the tide of mass exodus taking place. Moreover, these policies would stem the declining number of people who will be contributing to pensions in the years to come, as we have also examined in a previous issue. There are not enough young people left to pay for the rising elderly population, and youth unemployment, the lack of immigration, the exodus of the young and the dwindling birthrates are exacerbating this problem. The payments to the welfare system are already putting a strain on the debt situation in Spain and this can only increase in the future. Surely, this type of family-oriented policy, with so many advantages, could be implemented in Spain, were the government far-sighted enough to address the situation.
Finally:
'A video highlighting the plight of Spain's unemployed is spreading across social networks and fast becoming the antidote to cheesy Christmas adverts that promote consumer spending. The seven-minute clip follows the journey of three unemployed families in a suburb of Madrid over last the summer as they face the prospect of continued joblessness and become involved in a local protest movement.
Titled No Job Land, the video by three young freelance journalists based in Madrid has been shared on social network platforms thousands of times since being published two weeks ago'... From The Telegraph.
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