Editorial:
An important football match between rival Basque and Catalonian fans, the Copa del Rey with Felipe VI and Catalonian president Artur Mas in attendance, was preceded last Saturday as by custom with a rendering of the Spanish national anthem, which was in turn drowned out by a furious whistling from the fans. La pitada, as it is known, was a burst of nationalism which, understandably, angered the Spanish nationalists. Now the Government, torn between its lip service to 'freedom of expression' and its disapproval of the lack of respect towards national institutions, wants to write a new law making such an 'example of intolerance' illegal. As a footnote to history, Miguel Primo de Rivera closed the Barcelona Camp Nao in 1925 for a similar pitada.
Housing:
Owners of 'illegal homes' were disappointed by the failure of the passage of a PSOE-sponsored bill in the Senate last week to allow judges to insist on full compensation for 'buyers in good faith', before their homes could be demolished. Story here. A note from the AUAN is at bottom of this page.
'The Spanish Balearic Islands, which reported some of the lowest house price falls in Spain during the six year economic downturn, is now experiencing the fastest and highest rises in the country. The strong property market is being supported by a healthy tourism sector and a multi-national house buying population, according to Alejandra Vanoli, managing director of Mallorca Sotheby’s International Realty...'. Story at Property Wire.
The results of the local and regional elections have not played well among foreign investors, says Periodista Digital in an article called '¡Alerta roja! Se paralizan las inversiones extranjeras inmobiliarias en España'. Certain investors have stopped their advance in the real-estate sector while waiting to see how the new mayors of – particularly – Madrid and Barcelona behave in office. 'You need a bit more than a tee shirt and some rope-soled shoes', sniffs the director of La Razón in an attack against the probable mayor of Madrid, Manuela Carmena, criticised in turn by El Plural here. Indeed, worried about the results of the local elections in Madrid, Wang Jianling, the man planning to build a gigantic 3,000 million leisure centre with casinos and hotels on the outskirts of the capital, is coming to Spain next week for a serious chat with Felipe VI regarding political backing for his plan. Wang owns 20% of Atletico de Madrid and the giant Edificio España skyscraper in down-town Madrid.
'We're having problems buying property in Spain. What's the process?' - one of those Telegraph articles. This one deals primarily with the rules about cash deposits on property. As always, view the 'comments' with trepidation.
Tourism:
'Spain continues to break records for foreign tourist arrivals, and received 16 million visitors in the first four months of the year, representing an increase of 4.4% over the same period of 2014. Moreover, in April alone, Spain registered a record 5.4 million visitors, an increase of 2.8%, largely due to the number of tourists coming from the French and Belgian markets, and distant markets such as Asia or Latin America...'. From Kyero. According to the same site, 'International Tourists Spent 16,000 Million Euros to End of April', here.
From The Daily Mail: 'Spanish air traffic controllers are planning 10 days of strikes that could wreck the travel plans of thousands of British holidaymakers during July and August.
The controllers are intending to take action on five days during July and five days during August. The most potentially disruptive strike day would be Saturday, August 23 - during the UK Bank Holiday weekend...'.
Finance:
'Last week, Spain’s Minister of the Economy and Competitiveness, Luis de Guindos announced economic growth would be closer to 3.5% versus initial forecasts of 2.9% for 2015...'. From Property Week.
'May figures for Spanish job market show new signs of recovery', says El País in English headline here. Over 203,000 workers signed up on the Social Security and every province in Spain, except Almería, showed new jobs. Unemployment now stands (officially) at 4,215,031 souls.
'Don't get caught out by new Spain tax laws. British ex-pats living in Spain will have to be on their toes to keep up with the new Spanish tax rules'. Headline from The Telegraph.
While some news stories suggest that Spain is still in the doldrums, or that many Spaniards are under the poverty limit, these tales should not be taken seriously, says certain members of the Government, minimising reports from charities and even the National Statistics Agency (INE). Such reports might scare off foreign investors and even regular tourism. VozPópuli reports. '...In short, real poverty exists, although sometimes it is not easily seen. It grows inexorably and is not relieved by 'junk-jobs' or cheap housing. The number of poor children and adolescents should already be a signal that something is being done wrong, and not just leave it all to fatalism. If poverty is hopeless, and we don't find a solution, we will have failed as a country and as a society...'.
The Puerto Deportivo in Valencia is 420 million euros in the hole, according to Yo Me Tiro Al Monte, which blames mismanagement and the Partido Popular. Continuation of the marina rests in the hands of the new administration.
Politics:
'After game-changing municipal and regional elections in Spain, panic and fear are beginning to take root in the hallowed halls of government power and corporate HQs. The governing People’s Party (PP) won more votes than any other. However, it also lost majority control of virtually all of the country’s key municipalities and electoral regions...'. From 'It's Getting Ugly in Spain' at Wolf Street. An interesting article!
President Rajoy has admitted that the Partido Popular has made some errors... and he is now prepared to change course (in some undefined way). Reuters takes a stab at it here.
Sometimes the Old Guard needs to effect a good spring-clean before they leave the Town Hall to the newcomers. Sometimes, indeed, there is quite a lot of shredded documents to be hauled off by the dustmen. Rarely, though, as much as the papers destroyed in the Madrid Town Hall this week, so much that they had to order a second truck to haul it all away.
A 'zinger' from Podemos leader Pablo Iglesias, on hearing that the IBEX 35 companies had a poor opinion of his political success: 'They should start their own party and run for office'!
The Financial Times says that both Podemos and Ciudadanos, and the decline of the PP and the PSOE, are probably good for Spain with its item: 'Spain's Fracturing Politics May Help Cleanse its Institutions' (sign-up link). El Ventano quotes the story here.
Andalucía PSOE leader Susana Díaz and national PSOE secretary Pedro Sánchez are not friendly. The national leader tries to keep this light, says El Confidencial Digital, while Susana makes it all very clear to her supporters. Now, with Sánchez attempting to woo Podemos, the Andalucía leader is leaning towards a pact of governance with the Partido Popular. In exchange for PP support for President of the region, she will give them leeway to hold the town halls of Cádiz and Málaga.
The few Spaniards who live abroad, who managed to vote in Valencia... who, how and here.
The 'swearing in' of Town Halls takes place on Saturday June 13th. This follows votes by the councillors for the job of mayor. Firstly, along party lines, then, if necessary, along pre-agreed coalitions or – in extremis – with a minority mayor. Autonomies have two months from an initial vote to form a parliament, otherwise (unlike town halls) fresh elections must be called. The 'diputaciones' (roughly, 'county councils') will generally be formed in the second half of June, based on party power across the province.
'When I was ‘barred’ from my first Spanish election'. A story here.
What the different parties (say they) will do for the foreign residents. Here.
Corruption:
Senior Judge José de la Mata says that the Partido Popular was partly financed by a 'caja B', from between, at least, 1990 until 2008, used, he says 'as expenses generated in electoral campaigns, remuneration, salary supplements, compensations to people linked to the party or services related to the activity of the party'. Story at Público.
The Alicante police waited five years before releasing their material on the local Partido Popular corruption to the Court, says El Diario here.
Brexit:
'Calls are growing for voting rights to be extended to ALL British ex-pats living in EU member states regardless of the length of time lived outside the UK to give those most affected by a possible Brexit a vote in the referendum...'. From The Local.
'A bit like the 'Big One' which threatens California, Britons living in Europe are worried about the distant rumblings of a possible retreat by London from the EU known as 'the Brexit'. What would the departure of the United Kingdom from the European Union mean for the two million or so Britons living in Europe, and, does anyone in the UK care?...'. More at Spanish Shilling here.
Various:
'This new wind turbine wobbles elegantly in the wind, generating electricity without rotating blades. … A Spanish company called Vortex Bladeless has produced a wind turbine that takes advantage of the vortices produced when wind moves around an obstacle.
If you put any object in the path of the wind, it will create an undulating vortex behind the barrier. This is a problem that has plagued engineers for years: bridges have fallen due to wind eddies...'. Amazing new way to generate electricity. Story at IFL Science.
As elsewhere, Spain's names gain and lose popularity according to taste. Some names have disappeared from the list entirely, like the last owner of what was the popular medieval name Urraca, who died recently. Other disappearing names include Canuta, Prepedigna, Afrodisia for the women and Quinciano, Auxilio, Acindino, Prudenciano and Vítores for the men. Story at 20 Minutos. (BoT knows of only one Lenox... just saying!)
The DGT is considering whether to issue number plates, insurance and license to circulate. Next, they'll be asking for number plates on our shoes.
Recently, two churches collapsed drawing attention to Spain's lack of protection of lesser-known old building. El Confidencial reports on the dearth of maintenance on these treasures from the past, includes a location map for some of these. A list of nine major sites facing collapse here including the Roman bridge in Alburquerque (Badajoz). A more exhaustive list of forgotten and crumbling treasures is at Lista Roja del Patrimonio here.
'Spain's Top Theme Parks: For a long time now, theme parks have stopped being just for kids and have become a good way of releasing some adrenaline while learning about nature, animals or history. Dizzying speeds, free-falls, zip-lines, film sets and crocodiles await you on this journey around Spain's top 10 most exciting parks...'. From Eye on Spain.
'Despite seldom eating breakfast, sleeping very little and eating too much red meat, seven out of ten Spaniards consider their habits to be totally healthy. New research begs to differ...'. Story from The Local titled 'Spaniards are not as healthy as they think'.
'So, why do I like bullfighting?' Article at Vaya Madrid here. The Alfred Lord Byron poem on bullfighting here. A mass of pro-bullfight quotes (to annoy your friends) here.
Just in case we have some students of English on this site, here's '14 errores que no deberías cometer si quieres aprender inglés de verdad'.
Movistar put the price of their telephone 'Fusión' package, the one that was 'para siempre', up recently. The consumer's association FACUA sued them... and this is Movistar's reply: '...'For ever' means 'for all time' or 'for an 'indefinite time'; and 'indefinite time' means 'it doesn't have a shown or known end-date, unlike other promotional offers which offer a finite time period'...'. Lawyers, hey?
Netflix will begin service in Spain from October. Price from around eight euros per month, including films in VO and subtitled.
See Spain:
Spain has an impressive 44 UNESCO World Heritage Sites, says The Olive Press, which introduces the Reader to some of them here. (Note, for editorial reasons, the popular ex-pat newspaper doesn't use the letter 'ñ', so 'Doñana' is spelt 'Donana')
Barcelona's Sagrada Família: Gaudí's 'cathedral for the poor'. From The Guardian.
The Housing Market: Some Comparisons
by Andrew Brociner
In our six recent issues on the housing market, we have explored different reasons for the prolonged period of declining prices we have been witnessing. In this issue, we will highlight these explanations by making some comparisons.
In simple terms, a market price is determined by supply and demand and the market for houses is no different. In Spain, as we have seen, the continual decline in the price of housing for the last seven years has been driven by just this logic. The building frenzy during the boom years, when builders thought that they could construct indefinitely, led to the oversupply of houses that we still see today. The huge stock of unsold houses outstanding represents the supply side of the equation. And as far as the demand side is concerned, as we have examined in previous issues, there are different reasons contributing to its current lack in Spain, such as the declining population – and this for different reasons, such as the declining fertility rate, the halt in immigration and the emergence of emigration, due to the unacceptably high unemployment rate – with its concomitant decrease in the set-up of new households.
It is interesting to note, although of little solace, that some countries in the world are experiencing a property boom. Australia is an interesting case as it looks like a mirror image of Spain. On the surface, both countries offer beaches and sunshine. But, behind the appearances, things are quite different. In Sydney, property prices have risen 14% since last year and by an astonishing 60% since 2009 – the very period during which Spain saw a huge fall in prices, by 40% nationally and by nearly 60% in some areas. An average house in Sydney is now worth over €600,000. So, what is the reason? For one, the population of Australia continues to rise.
There is immigration taking place fuelling the need for housing. And there is a persistent lack of supply of housing. The government is actually looking into finding remedies for this problem. The picture of supply and demand is, indeed, the exact opposite of what we find in Spain.
Ireland too went through a property boom at the same time as Spain, but after going through its bust – also in 2008 – is now up and running again. Property prices there rose by as much as 16,5% in 2014 while Spain´s continue to decrease. Ireland´s policies of tax incentives to companies has attracted some to set up there and with them, people being employed and looking for houses. This has sparked a renewed demand for houses. And Ireland's population has continued to increase, in stark contrast to Spain's.
Ireland's fertility rate is around 2, which is the replacement rate for a population, while in Spain it is 1,3 and has been declining for decades. And while Ireland's immigration rate also plummeted at the time of the bust, it is climbing, while Spain's is in continuous decline. These factors contribute to a long-term resilience of the housing market, the absence of which in Spain, only adds to its being stuck in its current housing market situation.
There are other examples around the world as well of countries experiencing property booms, such as in Estonia, where a new generation of baby-boomers born after its independence is looking to set up house. In the US too and not that long after its decline in prices, some areas have been experiencing a rampant revival, such as in San Francisco and Miami. One can note that they too offer sunshine.
Finally:
Carla Bley and Charlie Hayden – 'The People United Will Never Be Defeated' on YouTube here.
Press release from the AUAN:
Spanish Senate rejects home-owners bid to improve the reliability of the Land Registry
Land Registry still not obliged to record existence of planning irregularities or demolition orders
Home-owners associations from across Spain failed in their bid to persuade the Spanish Senate to vote in favour of an amendment to the law regulating the Land Registry aimed at protecting buyers who purchase a house with a clean bill of health from a Land Registry Search (nota simple) only to find that the property has planning issues or even a demolition order.
‘I think that we have lost a great opportunity to provide more legal security to those buying a house in Spain’ said Maura Hillen from AUAN, one of the two British groups who went to the Senate on 27th May in a last ditch effort to persuade Senators from the majority party, the Partido Popular, to support the amendment. ‘Given that all parties seem to agree on the necessity for this change it is difficult to explain why the change didn’t happen’ she said.
The amendment was submitted by the Socialist Senator, Fuensanta Coves from Andalucía, with the backing of her party, the PSOE. It was supported by 63 Senators from the Socialist group in the Senate but was defeated when 149 Senators from the ruling PP party voted against the change.
Gerardo Vázquez, the spokesperson for the second British group, SOHA, said ‘We believe that at least we ensured that these issues are being debated at the highest levels and that the Senate is now aware of the existence of these social issues. As a result we are sure that sooner or later these problems will be resolved. We of course hope that it will be sooner’.
Antonio Vilela, from the Spanish association, AMA, added ‘The PP agree that changes are required, but indicated that due to lack of time and other issues it couldn’t be done in this Plenary session. They have invited us to submit our all our proposals so that they can consideration for incorporation with other legislative changes in subsequent Senate Plenaries.’
In response to this the associations have declared their intention to submit their initiatives to all political parties next week. In particular they will focus on a proposed change to the Contentious Administrative Law to guarantee prior compensation to purchasers in good faith should their property be demolished via the Administrative Courts.
In reference to the proposed change to the Land Registry legislation Mrs. Hillen concluded, ‘We may have lost that particular battle but we plan to move on to the next proposal and will submit our next initiative to all political parties next week. We won’t give up because we have right on our side and we are not asking for the earth, just common sense measures that benefit everyone’.
Contact: Maura Hillen 661329919 or [email protected]
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