Business Over Tapas 30 January 2015

Editorial:

Election year in Spain. After the upset for the Conservatives in Greece, the victory of Syriza and the apparent end of the politics of austerity, will Spain follow in their footsteps? 'Greece', says Podemos, 'is not Spain', although the party of the indignados seems very pleased with the result. Now we are to have snap elections in Andalucía chosen for March 22nd, before – presumably – the newcomer Podemos can get its feet properly under itself in that region. But later, with the PSOE seen as an irrelevance in the rest of the country, comes other regional elections, municipal elections (both on May 24th), Catalonia (September 27th) and finally the national elections somewhere towards the end of 2015. We shall know more about Greece's new government and their success by then. So how close does Podemos want to be to Athens? Perhaps not so close as to cause a distraction...

Housing:

'Thousands of ex-pats are on Spain’s ‘hit list’, accused of cheating the property tax system. Ex-pat property purchases in Spain over the last four years are being scrutinised in relation to Spain’s equivalent of stamp duty. Authorities suspect that thousands deliberately dodged the tax – the Impuesto de Transmisiones Patrimoniales (ITP) – when buying homes...'. More at The Olive Press.

'After listening to bodies representing Hotel and Tourism sectors in the community, the Valencia Government is to embark on a campaign aimed at rooting out illegal rental agencies and owners that are operating on the Costa Blanca...'. From The Leader.

An interesting article on the regulation of private holiday property rentals from Spanish News Today.

The Voz de Almería reports that those who own 'illegal homes' in Almería and Málaga have now focused their claims on the central Government, asking for changes in the Penal Code, where, as the leader of the AUAN notes, 'the only person prejudiced by the processes is precisely the victim'.

The anti-speculation-in-housing site Urbanísmo Patas Arriba begins its introduction to a news item from El País with 'What we feared is now finally happening: the Junta de Andalucía intends to 'regularize' (legalize) hundreds of thousands of illegal houses in the Region. Not all cases are the same, obviously, but in the end what remains is a sense of impunity, that here anything is possible: alarming!...'. The article in El País itself is titled 'Illegal Homes in 82 Municipalities Can Now be Regularized'.

'Spain’s biggest bank, Santander, does not expect the Spanish property market to expand in 2015, largely due to constraints in mortgage lending. In a research note to investors Santander says levels of new mortgage approvals lie at the root of its doubts about the prospect for the property market in 2015...'. From Mark Stüklin's Spanish Property Insight.

What is a catastro? A lawyer explains.

'If you are thinking about moving to Spain and would like to know why we think moving to Málaga is a great option, have a read of our A to Z reasons to live in Málaga ... please remember that, although we love Málaga Capital, in our A to Z we are referring to the whole of the Málaga province that has so much to offer!...'. (Promotional material at Slideshare).

Tourism:

Rafael Rodriguez, the Andalucian secretary for tourism, is one of the three members of the coalition IU within the Andalucian Government, which was dissolved this week in front of early elections in March (more in 'Politics' below). He has cancelled his presence and meetings for the international tourist fair FITUR, which began on Wednesday in Madrid.

Mariano Rajoy spoke at the 'Spain Global Tourism Forum' in Madrid, on the eve of the opening of FITUR, about how tourist spending increased in 2014 by 6.5%. He said with satisfaction that 'more are coming; they spend more and we earn more'. Story here.

The long-awaited opening of the cliff-hanging Caminito del Rey at El Chorro near Málaga has been announced for Easter 2015 by Elías Bendodo, president of the Diputación Provincial de Málaga. The death-defying path could become one of Andalucía’s biggest tourist attractions. From The Olive Press.

Finance:

'Spain has emerged from a devastating crisis and entered a "virtuous circle" with faster growth than its neighbours, but the IMF warns that high unemployment and the rise of populist parties still threaten the recovery...'. Found at The Local.

''Unemployment' is a sticky subject in Spain, and there are two completely different agencies, with two utterly different conclusions (provided by teams of diligent public bean-counters) who supply the information. Furthermore, while the number of unemployed has come down, so, apparently, has the number of hours worked, thanks to part-employment and other clever tactics from the 'patronal'. So, last Thursday's EPA (La Encuesta de Población Activa) figures show that Andalucía has an unemployment rate, as of Dec 31 2014, of 34.2%. Nationally, it's at a still scandalous 23.7%...'. From The Entertainer Online.

The European Central Bank will be buying around 100,000 million euros of Spanish government bonds over the next twenty months, according to El País in English. Following the announcement of this plan by the President of the ECB, Mario Draghi, the German Chancellor Angela Merkel said that the policies of Rajoy had borne fruit and that Spain was a good example of a country in recovery.

Spain is currently paying more than it receives from Brussels. In 2014, the negative balance was 1,600 million euros. El País explains.

The Modelo 720 declaration of assets abroad. An excellent commentary on the European Commission’s initial response to complaints against the asset declaration process. The conclusion is that the Commission should and probably will initiate infraction proceedings against Spain before the European Court of Justice, taking into account the considerations outlined here: 'Jaque de la Comisión Europea a la norma española que obliga a declarar los bienes en extranjero (Modelo 720)' From DMS Consulting (tax assessors).

Politics:

The President of Andalucía, Susana Díaz, has called for snap elections in the region for March 22nd. This after the ruling PSOE fell out with its junior coalition partner the IU and, no doubt, before the new rival Podemos can extend its grip on the region. While Andalucía has always been held by the PSOE, usually with an absolute majority, the last elections three years ago saw the Partido Popular with the highest number of support ever (50 seats against PSOE's 47) forcing the socialists into a coalition with the third force, the Izquierda Unida (itself a coalition of far left groups whose full name is 'Izuierda Unida Los Verdes - Convocatoria para Andalucía'). The Independent also carries the story. It's odd that Ms Díaz ignores the inconvenience towards some twenty thousand election officials and couldn't wait until the May 24th municipal elections (like most autonomies, which hold both on the same day)...

The PP national convention held in Madrid this past weekend insists that the new rival to the Spanish conservatives is Podemos and that the PSOE are now little more than anecdotal. Found at El Mundo. Some pictures at El Confidencial here. Rajoy warns against playing Russian roulette with Podemos, found at El País in English.

A TV interview with Pablo Inglesias on La Sexta (he doesn't show up much on the Government channels) shows the leader of Podemos in good form. He says at one point that 'Spain will certainly not leave the euro if we govern'. The BBC introduces Podemos to British viewers video here (shorter YouTube version here).

A rare TV interview on Tele 5 for Mariano Rajoy. Contradicting claims for the contrary from newly-released Luis Bárcenas, Rajoy said that he had neither known about the black accounts in the PP nor had he ever received payments in 'black'. Story at El País.

The supporters of SOHA, the association that strives to protect or legalise those 'illegal' homes in the Axarquía region of Eastern Málaga, have decided that politics is the only way forward (they are quite right!). Their choice is a party called Ciudadanos. 'We expect to obtain a majority in Alcaucín and La Viñuela, while in other local municipalities we shall strive to hold some power through tactical support of other parties'. Said a spokesperson. Here we read of SOHA in the Sur in English: '...SOHA’s current purpose – in light of May’s local elections – is to get as many of its members on the electoral lists of the political parties which are most likely to run town halls in the affected areas of the Axarquía...'.

That excellent Minister for Culture, Education and Sport was ebullient this week about his censorious LPI 'piracy' law, stating that 'better than a hundred Spanish web-sites have now closed down'. Asked about the 21% IVA on cultural activities, the highest rate in Europe, José Ignacio Wert gave a professional politician's reply: 'As things improve, we shall be able to consider reducing the level on taxes'.

Wolf Street: The Troika punches panic button on Greece and Spain. Here. An interesting article about the Establishment's concern over the new parties of the left. A quote: '...the fear among the political elite, both in Madrid and Brussels, is palpable. In the last few days, Prime Minister Rajoy dispatched his Vice-President, Soraya Sáenz de Santamaria, and Minister of Industry, José Manuel Soria, on a vital mission to persuade Spain’s biggest media conglomerate, Grupo Planeta, to adopt a more critical tone in its reporting on Podemos. In return the government will offer the broadcaster more licenses for more channels. Bienvenido a España!...'.

The ABC, a staunch right-wing daily, says that the Government of Gibraltar believes that a victory for Podemos would be of benefit to the Rock. Indeed, Vice Prime Minister Joseph García said as much in Brussels recently that 'the triumph' (sic) of Podemos would bring a positive impact on relations with Spain. But wait... it gets better. The PP mayor of Algeciras (Cádiz) says that Gibraltar is probably financing the Podemos party since 'what's good for Gibraltar is bad for Spain'. In reality, Podemos has not spoken so far on either the subject of Gibraltar nor their potential treatment of foreign property owners in Spain (besides, clearly enough, controlling the corruption and fraud here). Comparing Gibraltar with its Spanish neighbours, by the way, we find unemployment at 3% and 35% respectively while average wages are at 59,000€ and 10,000€... Found in July 2014 article from El País.

Well, here's a bit more on the Gibraltar thorn: the Spanish Foreign Minister José Manuel García-Margallo y Marfil has successfully threatened the President of the Nuevo Economía Forum to cancel a speech to be made by the Prime Minister of Gibraltar Fabian Picardo at the Hotel Ritz on February 3rd. The speaker was to be presented by the British Ambassador Simon Manley, so, in all, a diplomatic mess. The Times repeats the story (pay wall).

El Diario takes a look at the politics of 2015 here. This includes such discussion as the possible break-up of the Izquierda Unida, the concerns of a post-election pact between PSOE and Podemos in Andalucía, Which autonomies to fall to Podemos in May (Asturias, Madrid and Valencia, perhaps), Will Susana Díaz make a play for secretary general of the PSOE after the summer, what will happen to Catalonia's independence drive following their September elections and who will finally win the general elections at a still undecided date?

The left wing of the PSOE says it will join the demonstration on Saturday called by Podemos in Madrid. The demonstration, called 'La Marcha del Cambio', has its own web-page here. El Ventano carries an interesting interview with Podemos' Íñigo Errejón.

Well, a cute video of Mariano Rajoy speaking to just ordinary folk to tell them 'Thank you... for your patience', in 'Juntos por un gran país'. On YouTube...

Corruption:

Luis Bárcenas duly left prison last Thursday and is now waiting for the right moment to behave either well, or more likely, badly. He appears to have compromising recordings of both Mariano Rajoy and Javier Arenas, if Información Sensible is to be believed.

Essay:

From an interview with Enrique Dans (Spanish Internet and Media expert and Professor at the IE Business School, Madrid) which appears in the magazine La Soga, here talking about the Government's political control of the Press:

'...The AEDE (the association of daily newspapers) is a lobby, an exclusive media club that excludes the rest of the media. In other words, the AEDE are the main 'forever' newspapers and if you were to try to launch a new newspaper, the certainty is that you won't be able to join the AEDE. And if you were to start a newspaper that does not use paper, you can not enter AEDE. And if you're a newspaper which is distributed for free, you can not enter AEDE. It is an exclusive club. A club for 'forever' newspapers.

These 'forever', or institutional newspapers, have not been able to do well out of the opportunities from the Internet and they have also not been able to make money from it and, so, now what do they do? Well, they must take it away from other news-providers that do succeed. They say: Ah, Google is making money and we aren't. So, we must get something from Google. This in a country where the newspapers can get the Government to approve a law to take money from Google is so insane, so corrupt, so absurd... The publishers say to the Government: you know, they are making money and we aren't, and they ask for a law so that these people, these interlopers, have to give money back to us. But what we are talking about? Just what sort of a country is this? But then, along comes the Government reply: Ah, it's interesting what you say. Cool down your editorials and make us sound better and you've got yourself a deal. Say what? This is a scandal!

Talk begins about the 'Canon AEDE' and suddenly the three most critical directors of the Spanish press are relieved of their positions (El Mundo, El País and La Vanguardia, all let go in 2014) and along come new and much more friendly editors, much less troublesome. Meanwhile, several investigations being carried out by their newspapers are quietly dropped: they simply disappeared from the headlines. The editorial line becomes much more harmless, a year prior to elections... Goddamn, this is an absolute fix. When we get to this level, all we can say is that we are living in a country far less transparent than what we thought it was. We thought we were living in a consolidated democracy and now it turns out that the Government is a joke...'.

He continues later in the interview with the point that, from now on, the question will arise:

'who owns that piece of news?'.

For the time being, and with confusion and doubt on all sides, the Government has quietly let the subject of a canon for aggregators drop off their to-do list.

An American think-tank called 'The Information Technology and Innovation Foundation' (ITIF), considers Spain to have one of the highest protectionist and distortive practices in innovation and productivity in the world together with China, Russia, Indonesia, Nigeria and India. The reason, says El Diario, is thanks to the LPI (the 'Google Tax' or 'AEDE Canon').

Various:

A judge in the Canary isles suspects that Repsol in reality found 'a colossal reserve of crude'. Their departure from the seas east of Lanzorote, says the judge, 'could be merely tactical'.

The Junta de Andalucía wants to expropriate the giant mosque/cathedral in Córdoba. Video and article about why they shouldn't: found at Keep Calm and Mezquita en Paz here.

From this summer, the Government will ban heavy lorries from using 1,350kms of national roads, obliging them to use toll roads instead. The Government will pay half of the tolls. This keeps ordinary roads safer and the toll concessionaires happy. El País explains.

The arrest last week of Helga Schmidt, the artistic director of the Palau de Les Arts Reina Sofía in Valencia – was ‘excessive’ and ‘unnecessary’, says Valencia governor. Here.

Aggressive driving can cause accidents, so how to identify and control it? '...A group of researchers at the Universidad Politecnica de Madrid (UPM), tried to tackle the problem by creating a system that can detect signs of risky driving behaviour and help prevent speeding, tailgating, or running red lights, which are some of the most common forms of aggressive driving. They have developed a new model that monitors various driving parameters that can be used to detect symptoms of aggressive driving, primarily speed and acceleration. The model was tested in real-world driving situations with empirical data and was found to be 92% effective...'. Found at DMV (America).

The Ministry of Industry has decided to listen harder to the phone companies than to their subscribers over the issue of removing 'roaming' charges for calls to Europe. Story here.

Pedro J Ramírez (founder and erstwhile editor of El Mundo), answered on Tuesday questions put to him by readers of El Diario here. Here he answers the question about whether Rajoy should have resigned after the story in El Mundo about the President of Spain being under suspicion for taking envelopes with black money, for running a party said to have been illegally financed for two decades and one who had been caught out in various lies... Ramírez answers that 'The day after I published the messages addressed to Bárcenas, Rajoy should have resigned as President. In any democratic country worthy of the name, that is what would have happened. In Spain the system may be different, but in the eyes of the public, Rajoy from that day is the living dead.'. Ramírez starts a new digital newspaper, El Español, in October.

'The Dalí Theatre-Museum was inaugurated in 1974 and was built on the remains of the former Municipal Theatre of Figueres and is considered to be the last great work of art created by Salvador Dalí. Everything in it was conceived and designed by him so as to offer visitors an authentic experience and draw them into his unique, captivating and almost hypnotic world...'. Illustrated article about Dalí's museum at Who Said That?.

Apparently the story about Residents having to use a Spanish driving licence is just a sparkle in the DGT's eyes, the EU directive states that any current EU driving licence with a photo is fine – anywhere in Europe (even Spain).

'British residents discuss concerns with Alicante Consul at focus groups. As part of a visit to the Alicante Consular District this week, Consular Regional Director for Southern Europe, Will Middleton and the newly appointed British Consul to Alicante Sarah-Jane Morris, have held focus groups with members of the British Community in San Fulgencio and Calpe...'. Found at Typically Spanish.

'Announced today, a call has gone out to ‘elite young instrumentalists aged 22- 31 from all over Spain’ to audition for the Bankia Symphony Orchestra (OSB). … Hang on a minute.

Bankia is one of the rogue Spanish banks that had to be bailed out with taxpayers money in the past decade. Now it can afford an orchestra?...'. From Slipped Disk.

That list of great tapa bars again. Here.

Finally:

Bandmaster getting annoyed with the silly Englishman.