Editorial:
The bombing of the trains at Atocha ten years ago and terrible loss of life – 192 people – are remembered in Spain this week. These horrible acts of terrorism serve for little, except of course to allow justification for their control. At least we haven't got a 'Homeland Security' or a domestic version of the NSA spying into our Facebook accounts or infecting us with malware to keep us all on our toes. Indeed, the European Parliament takes a poor view of this type of overreaction. However, no doubt it's just a matter of time before we fully embrace the joyous values of Big Brother.
Housing:
'A group of ex-pats have lost a two-and-a-half-year legal battle to prevent the demolition of their wooden homes on the Costa de la Luz. The residents are now suing an English developer for over a million euros after discovering that their properties are to be knocked down next week. The group from the Atlantic Forest Park, in Zahara de los Atunes, (were) ordered to leave their houses on March 12, after Barbate Court ruled on the side of the landowner...'. From The Olive Press. Here is one of the comments following the article: 'I do feel sorry for the people losing their homes. They trusted their lawyers to do their job properly which, to my mind, they didn't do. Unfortunately, as in any country, it isn’t easy to sue a lawyer. The Junta could, and should, do a better job at resolving this fairly'.
'Cheaper than a garage, the ingleses are buying up entire abandoned villages', says the ABC in surprise, continuing with the sub-heading: 'A third of all deep-country sales are made to the British, who find great opportunities for their retirement'. The paper begins its piece with 'In the Ribeira Sacra, they drink tea and eat fish and chips...'. Well, it's for the home consumption. Quoting the Daily Mail, the ABC says that there are 2,900 abandoned villages in Spain, and they are being examined with enthusiasm by potential British buyers.
Residency requirements for living in Spain and other good stuff from GOV.UK. - 'This guide explains the new rules for British citizens applying for residency in Spain, what documents are required, and information on the right to reside in Spain for both British citizens and non-EU family members'.
Tourism:
Where to go, what to see. Here is Spain's official tourism portal: Holiday in Spain.
Finance:
'The business association for the leading constructors in Spain, the 'Seopan', forecasts the destruction of 75,000 jobs in the construction industry against the creation of 92,000 in other manufacturing sectors. The President of Seopan, Julián Núñez, says that construction activity will be reduced between 4% and 6% this year, affecting adversely the national GDP by -0.6 points of GDP...'. From El Mundo, which adds that public commissions have fallen 61% from the highs of 2009 and that the low levels of public investment per capita will leave Spain at the very tail of the EU27 during 2014-15.
An article in The Times of London begins: 'One country is blessed with sol, sol, sol most of the year. The other is renowned for its appalling weather. However, despite the home-grown meteorological advantage, Spanish solar companies prefer Britain’s business climate.
Up to 12 Spanish companies involved in the photovoltaic solar panel sector have chosen to expand in the UK in the past three years as their home market has declined...'. The excerpt comes from a full story in Energías Renovables about how '...in the United Kingdom, solar energy projects with an installed capacity of 5 MW can receive financial incentives from the Government, of around 500,000 pounds sterling. Those projects with a capacity of 10 megawatts or more can expect annual incentives of some 1.2 million pounds...'.
'Spain for Sale' and a few pieces at Reuter's about how George Soros and many others are 'investing' here. But here's a piece at El Blog Salmón: - 'Spain for Sale and the vultures are circling, ready to make some business. Since Donald Trump coined the phrase "Spain is sick and now is the time to take advantage", the vulture funds have not stopped stalking their prey in Spain. Hence, expressions like "Spain is in fashion" or "the fear has gone" are being heard in the boardrooms. Money has begun to arrive in Spain big-time, said Emilio Botín just a few months ago. According to the Wall Street Journal, 200 foreign funds watch Spain with 40 billion euros ready to "invest", while the BBC estimates the figure at nearer 58 billion euros. In Spain, the vulture funds are finding all sorts of opportunities to justify their existence. For the Government, it is proof that the economy is reborn. For the companies concerned, it is the final brutal fight in an economy shattered after six years of crisis...'.
'Everyone agrees that Spain's exit from recession will be slow, at best. A major reason is that Spain's banks are being overly cautious and extending very little credit. One wonders whether there isn't anything the government can do to stop the banks preventing more rapid exit from a deep recession which they caused in the first place. After 5-6 years of pain, do the bankers still rule the world? Will there not be a full recovery before they're all strung up from lampposts? Have we got enough lampposts? I think we deserve answers. Meanwhile, the Bank of Spain forecasts that the credit squeeze will bankrupt 15,000 large companies and 50,000 small companies by the middle of the year. If nothing is done. Anyone holding their breath?'. From Colin Davis' Thoughts From Galicia.
Corruption:
Unfortunately, stories of fraud or theft from charities are quite common in Spain. Here's one: 'A tax inspector tells the judge that in 2008, the 'Fundación Cyes' only sent 43,000€ to Nicaragua', out of a collection of 1.5 million euros. Speaking at the inquiry into the 'Caso Cooperación' which is an investigation into the Conselleria de Solidaridad a now defunct department of the Government of Valencia, the inspector said that the department used a number of fake companies to whitewash the funds. The case continues... (See Valencia Plaza).
Judge Mercedes Alaya, who is immersed in the Andalucía ERE investigation, on Wednesday served ex-Minister Magdalena Álvarez (national PSOE Minister for Public Works 2004 – 2009 and Andalucía Councillor for the Economy and Revenue 1994 – 2004) with a bail of 29 million euros. Actually, Spain being Spain, it's for 29,568,129 euros. 'The judge considered the ex-Councillor to be '..."one of the promoters, in collusion with others, of the illegal procedure of labour subsidies that occurred in the regional administration since 2000 and continued until 2011"...'. Found at El Diario.
Crisis:
The American economist 'Joseph Stiglitz says that Spain is in a worse depression than the Crisis of 1929', according to 20 Minutos. The 2001 Nobel Prize winner made the remarks while talking at a conference at the European Parliament last week.
Politics:
The AEEPP, the largest association of press editors, together with the newly formed Plataforma Canon AEDE, are both firmly against the proposed 'Google Tax' and an item from the threatened (but useful) Menéame claims that the AEDE newspapers lost over a half million visitors in the first week following the announcement of the Government plan to charge a canon on aggregators. All at the El Diario here. The Coalición ProInternet is a group of editors, aggregators and websites against the AEDE canon, here. A list of the AEDE members, unsurprisingly in favour of the proposed tax for news aggregators (the monies collected would go entirely to them), here.
The Government has halved the budgets for research and development at Spain's universities in the past two years, according to El Diario. In 2013, the investment was 158 million euros, down 55% from the 2011 level.
The new (as yet unofficial) leader of the Andalucían Partido Popular is Juan Manuel 'Juanma' Moreno and he has been quick to make his mark, delivering a large number of suggestions and questions for the Andaluz President Susana Díaz in their first meeting at the Palacio de San Telmo, the seat of the Andalucian Government in Seville. The 23 folios provided by the new PP leader included recommendations on employment, fiscal improvements, taxes, political transparency, and audits on departments under suspicion of corruption. Moreno told reporters that his policy is to 'extend the hand to help and agree on certain policies with the Government, while insisting on taking a larger rôle in day-to-day politics, since the PP was the largest party in both votes and circumscriptions in Andalucía following the last elections' (The PSOE runs Andalucía in coalition with the IU). More on this at Ideal.
Artur Mas, the President of the Catalonian Generalitat, says that, despite Mariano Rajoy, there will be a referendum on a future independence for Catalonia in November this year, following Catalonian laws. Story at El País. This will not end well.
'The very same PP that has a political pact with Bildu (extreme left nationalist group) in Vitoria (capital of the Basque Country) considers as high treason, little less than a collaboration with terrorists, that the Navarra Socialists should attempt a motion of censure against Yolanda Barcina, the UPN (a PP clone) President of the Navarra Community, based in Pamplona, with the support of the self-same Bildu. Apparently, only the Right can make arrangements with "friends of ETA", as the senior PP politician Esteban González Pons calls the group. The double standards of the PP is evident. The weakness and cowardice of the PSOE is too!...'. Sra. Barcina has been accused of corruption, but the only way to unseat her has been, uh, quietly dropped following instructions from the PSOE headquarters in Madrid. Will this weakness do damage in the European elections? Well, perhaps. The quote above is from an opinion piece in El Diario.
Last Sunday, the senior PP deputy González Pons warned that in the event of a socialist victory in the May European elections, 'we would be supporting a sensation of weakness that would probably return Spain to the worst of the crisis'... From El Huff Post here.
The pop star Bono took a starring role (sorry!) at the European People’s Party congress in Dublin held last week. '...The U2 singer spoke about capitalism, the European Union, the troika, Ireland’s bailout and racism against Roma and Africans, as well as Merkel and Rajoy, who were seated in the audience.
And he also spoke about Spain. Bono argued that Europe still had much more to do to get out of the crisis, not just in economic terms, but also in terms of its feelings of unity. “You’ve got Prime Minister Rajoy just this week urging the EU to make structural reforms that will create liquidity in the Spanish economy,” he said....' later adding '...“Where is our Europe-wide campaign to spotlight Spain, to encourage others to take their holidays there, to buy Spanish goods, listen to Spanish music?”...'. From El País in English. Next thing we know, he'll be considered as a 'Bono del Estado', ho ho.
The judge remembered for jailing the ex-President of the Caja Madrid Miguel Blesa, twice, before being suspended from his job (and shown the error of his ways), Elpido José Silva, has announced the formation of a new political party which is 'pro citizen and anti corruption'. Público, which reports the story, appears not to know of the party's name.
The Vice-President of the Murcia Region, Alberto Garre López, has been voted by his party to take over the top job in Murcia after the current incumbent, Ramón Luis Valcárcel, is joining the candidature for the European elections. Garre Lóperz will be sworn into office in mid-April. Story at El Mundo. As of Thursday morning, it's still not known who is Rajoy's candidate for leadership of the Partido Popular for the European elections in May.
Courts
Typically Spanish notes that over in Marbella, 'The Malaya court has ordered the sale of Juan Antonio Roca’s personal plane. Since the plane has been impounded by the court, it has been used by the Interior Ministry, and the Police have been reticent to sell her.
Despite that amusing fact it seems the Cessna Citation II 550 will finally be sold and the money will be given to Marbella Town Hall as granted by the first instructor of the Malaya case, Miguel Ángel Torres, on May 5 2007. In September 2004 when the plane was purchased it was worth 1.24€ million'.
Essay:
How do these unnatural and peculiar people ever get to govern us? For anyone who reckons that Spain is still free, fun and easy-going: 'You’d think that a bill to end a woman’s right to abortion on demand in Spain would be of such fundamental importance that the rest of Europe might have something to say about it. But it seems that despite regular and vocal protests in Spain itself – the latest planned for (last) weekend – the reaction elsewhere in Europe to what's going on in the EU's second biggest country has been somewhat muted.
Which is odd when you think that what’s being proposed is a plan to make abortion illegal except in the case of rape or when there’s a risk to the physical and mental health of the mother. In any circumstance, a woman wanting a termination would need two doctors to vouch for her. So the new law would be amongst the most draconian anywhere in the world...'. From The Telegraph. Between the poor opinion towards women's rights apparently held by this Government, the harsh drug laws, copyright laws, drinking laws, housing regulations, banking protectionism and the 'sheathing' for politicians (closest I could find for aforados), things are getting rather stern. An aforado, by the way, is someone who is immune from the ordinary laws that beset the average citizen. Here's El Mundo writing that Spain is '...the democracy with the most protection for politicians and selected others in the West: with some 10,000 aforados. The figure causes embarrassment when compared with neighbouring countries. France only shields her president and his ministers; in Italy and Portugal, it's just for the Head of State. And in democracies as robust as Germany, the USA and Great Britain, this get-out-of-jail-free card doesn't even exist...'. Indeed, there are 3,000 politicians who are inviolate in Spain, together with 7,000 judges, prosecutors, ombudsmen and others. They can be judged, but only by special politically weighted tribunals. Or, eventually, one must suppose, by the electorate.
But, do the politicians, once in power, respect their manifestos? Were abortion, olive oil containers or copying films mentioned during the two-week election campaign allowed by the 'Régimen Electoral General'? It doesn't ring a bell.
Here's Un Espía en el Congreso: 'José María del Nido, President of the Seville Football Club, entered prison on Wednesday, and although at the moment the Bullfighter Ortega Cano who should also be there struggles to remain outside, two people who fully intend to never serve time, both convicted of corruption, are the former President of the Balearic Islands, Jaume Matas, and the former President of the provincial Council of Castellón, Carlos Fabra. You see, the Consejo General del Poder Judicial, the judges' governing body, is controlled by the political parties and they have no qualms about skipping the law to save their own...'.
So, as many people in Spain will attest, why vote at all? Many of them don't. Otherwise, the voto en blanco – an empty envelope – makes a nice statement, but really only favours the main parties.
Various:
On Tuesday 11th March, the events of the worst terrorist atrocity in Spain, the train bombing in Atocha, Madrid, were remembered. Ten years earlier to the day, four local trains were bombed with ten explosive devices and 192 people were killed and 1,858 were wounded. What followed was a complicated investigation where political ends muddied the waters and, it is generally felt, the PP lost the general elections that immediately followed, to an apparently unprepared José Luis Rodríguez Zapatero. El País in English has some reports on the tragedy here, here and here. The site also claims that the Government warns of the high risk of new Islamist attacks in Spain here.
'Spain is the most unequal society in Europe, according to a report that finds three million Spaniards now live in conditions of "extreme poverty", and another study that shows the number of millionaires has increased. A report by the Catholic charity Caritas says more than 6% of Spain's population of 47 million lived on €307 a month or less in 2012, double the proportion in 2008 before Spain was hit by the recession, which has left 26% of its workforce unemployed...'. Found at The Guardian.
According to El Huff Post, more than 10,000 bars and restaurants closed their doors in 2013 thanks to the continuing crisis.
A rambling article in the New Straits Times (Malaysia, I looked) about the return of the Spanish 'wilderness': - 'In an oak wood spanning the border of Spain and Portugal, an ancient sight unfolds: wild horses, not saddled or shod, but roaming free as they did centuries ago. Farming has declined in Spain, leaving the countryside deserted, conservationists say. Now the wild things are coming back: wolves, vultures and rare herbivores...'.
A poll over at Eye on Spain: Has Spain's image improved around the world over the past couple of years?
Concert returns are down 30% since the IVA on culture went up from 8 to 21% in September 2012. According to La Asociación de Promotores Musicales, several important international stars have cancelled their concerts in Spain following the drop in attendance, including Robby Williams, while last year, Bon Jovi played a concert in Spain without a purse in solidarity with the Spanish fans.
'The figures speak for themselves: the Club Noruego Costa Blanca is ready to celebrate its 44 anniversary in April and has more than a thousand members. However, in Alfaz del Pi there are two Norwegian schools; 3 Norwegian residences for elderly people; they have their own church in Albir and the only volunteer centre outside of the Scandinavian country in Europe. It is also here, in Alfaz del Pi, where the town celebrates May 17, the national day of Norway.' This from El País. Indeed, on the Costa Blanca and the Costa del Sol, many towns honour their foreigners with festivals and foreign-run departments. None, unfortunately, do so on the Costa de Almería where the level of culture is, perhaps, a trifle lower.
'On Sunday, March 30th, La Nucía will celebrate its “International Day”, a cultural event especially addressed to the international community living in Spain. There will be musical performances, dancing, traditional clothing, traditional dishes, crafts, etc. From 11.00 to 17.00 hrs., in the Sports Hall ‘Camilo Cano’, La Nucía. Free entrance'. (Note from the Ciudadanos Extranjeros Diputación de Alicante)
'A landmark visit by Queen Elizabeth II to Gibraltar and Southern Spain is currently under discussion. The UK foreign affairs committee raised the possibility of a royal visit during a meeting in Gibraltar last week. It would be the first time in 60 years that the British monarch has visited Gibraltar and it is hoped it could potentially improve relations with Spain...'. From The Olive Press. (That should get the Spanish press off the current subjects of unemployment, corruption, immigration and protest)
'The chief minister of Gibraltar has told top UK officials a possible UK exit from the European Union could see the diminutive territory disappear "economically from the map".
Gibraltar Chief Minister Fabian Picardo made the comments to visiting delegates from the UK Foreign Affairs Committee of the House of Commons on Wednesday. "If we had to apply our minds to an economic model that might enable us to survive UK exit from the European Union, it might be possible to design something where a lot of belt tightening might mean that we might not actually disappear economically from the map," said Picardo after the meeting. "The snapshot is that it would be a disaster," he was quoted as saying in the Gibraltar Chronicle...'. From The Local.
Fifty books about Spain – novels, cookery, history. The suggestions come from a blog called Piccavey.
Writers in Spain are a group of writers and editors based in Spain who publish information and articles about the many facets that Spain offers visitors and residents. Their webpage here.
'...An old Guardia Civil officer, old enough to remember the days when his agency functioned as Franco’s enforcers, walked by me, sweeping me with icy eyes perched between his forest-green suit, more military than police, and that hat, the black vinyl oddity that looked like it should adorn a citizen of Lego Land. An old woman noticed me pondering him and rolled her eyes. “No te preocupes, él tiene recuerdos de cómo era.” Don’t worry, she said, he remembers how it was. He overheard her and took a step towards us. “Sí, cuando España era España.” Yes, when Spain was Spain...'. - Nostalgia for a departed Spain, over at Vaya Madrid.
'Celebrity chef Gordon Ramsay is looking for struggling UK ex-pat restaurant owners in Spain's Costa del Sol to take part in his latest series of Kitchen Nightmares. The Michelin-starred cook will offer up his expert advice to British bar and restaurant owners whose businesses have been hard hit by Spain's economic downturn. "He will visit restaurants on the Costa del Sol to try to help them," a source for the Channel 4 TV show said...'. Well, that should be interesting! Story at The Local.
The Spanish Economy
By Andrew Brociner
A Review of the Economic Situation: One Year Later
At the beginning of last year, we reviewed the economic situation in Spain and found that despite the government's rhetoric about all being well with a recovery just around the corner, there was nothing to look forward to. In fact, we predicted that one year from then, the picture would not essentially change.
So, after making these claims, it is appropriate to assess the situation one year later.
We could start, naturally, with growth. The annual data is still not available for 2013, but as we have said in a previous issue, the best so far that can be hoped for is some oscillation around zero. When this data becomes available, we will insert the update. But so far, there is little growth to note and certainly not a sustained recovery.
The problem underlying this lack of growth is the lack of household consumption. It is evident that with the high unemployment situation persisting, there is not much in the way of spending. A look at the graph below on private consumption confirms that Spain has not recovered significantly from its fall at the height of the boom. The last available data, for the third quarter of 2103, puts Spain more or less where it was in 2004 – ten years ago!
Imports too do not fare any better as can be seen in the graph below. In this case, the data is available until the fourth quarter of 2013, but no significant increase can be noted. In fact, imports seem stuck in a range for the last two years.
With internal demand so low, it is difficult to conceive where growth is supposed to come from. We also know that the unemployment situation is not going to get radically better any time soon. The unemployment rate, as can be seen in the graph below, at the end of 2013 was exactly where it was at the end of 2012. We have discussed how this rate will stay high for a long time to come. Moreover, as we have also discussed, the rate should have peaked during the last year and come down somewhat due to the emigration taking place in Spain. But while it seems to have peaked, not even these demographic effects have made any significant effect on the unemployment rate. And as we have discussed at length, this is the worst possible way to tackle unemployment, as the young, skilled and productive workers leave to the benefit of the host country and to the detriment of Spain.
So, internal demand is still very weak underpinned by a high unemployment rate and therefore, growth is not being fuelled.
We shall continue the review of the situation next time.
Finally:
Here's Lluis Llach with his song 'L'Estaca' on YouTube: the famous anti-Fascist song which got him into a certain amount of trouble with Franco back in the day...
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