Editorial:
The new town halls will be voted in on Saturday, and many regions now have agreements for coalition support (some of them complicated, other with decidedly ‘odd bedfellows’). The question is, as we wait just a few more days to begin another four year exercise in democracy: how many people are already regretting their vote?
Housing:
‘The economic downturn has led to a significant rise in the number of people renting a home in Spain for the long term with strong demand from nationals and foreign residents, new data shows. Overall the Spanish rental sector has doubled in the last five years, according to the data from the country’s National Statistics Institute and figures also shows that yields are up to 7.6% for long term lets...’. Found at Property Wire here.
The ghastly 20 storey hotel between the beach and the national park, almost completed in 2005 then suddenly halted by political order – but was it justified? ‘With four sentences the Supreme Court will finally solve the tangled web of the Algarrobico hotel. Two of the sentences are already solved, but the Supreme has decided to announce all four together in September. It will end years of legal wrangling and will finally rule on whether the Algarrobico hotel on the Carboneras beach built by Azata del Sol will be demolished or not...’. Story from Typically Spanish.
There’s a smart looking property on Castellón’s Golden Mile for sale with a 40% discount, says El Mundo. The only drawback – the new owner will have to find a way to remove the okupa, the squatter. ‘Those interested may not – unfortunately – view the property’ says the vendor apologetically.
Tourism:
‘Magaluf has introduced tough new laws designed to clean up the image of the tawdry resort, and after only one day local bar owners are already moaning about the heavy police presence...’. From The Local.
The new and still untried airport in Murcia, Corvera International, has had its management contract withdrawn, says The Leader, causing fresh delays to the opening of this facility. ‘...today Corvera airport still stands empty. The main entrance to the airport is fenced off, and there is little sign of activity within the airport compound itself, and with the Paramount theme park project seeming to have stalled, and with little argument that San Javier Airport remains a far better location than Corvera for tourists visiting Torrevieja and other popular Costa Calida seaside resorts to the south, we continue to wonder whether Corvera will simply join the country’s many other mothballed airports, testament to the falling passenger numbers and the ongoing economic pressures still being felt by us all...’.
‘More than a hundred Marbella-bound tourists have been left in the lurch after holiday company Rainbow Villas suddenly ‘ceased trading’...’. Says The Olive Press.
Finance:
El País in Englishheadline: ‘IMF calls on Spain to raise VAT and enable cheaper layoffs’. Just a little bit more and we’re there, said the International Monetary Fund on Monday.
‘One in ten Spanish households has serious problems paying for their basic household utilities, such as electricity and gas supplies. This translates to 1.8 million families, or around six million people. This rate has tripled in the past six years, from 3.6% to 9.88% today, according to the ‘Energy Poverty in Spain’ report, presented by Economics for Energy, a private research centre, participated by universities, foundations and firms, that applies economic analysis to energy issues...’. From Kyero here.
As the ‘crisis’ draws to its close, there are new companies in Spain which are in bankruptcy proceedings. Furthermore, many workers are facing EREs and some large companies are expected to announce major redundancies in the weeks to come. Story here.
Spain’s new bankruptcy legislation offers hope for debtors. El País in English explains.
32 of the 35 companies which make up the IBEX-35 at the Stock Exchange operate branches based in fiscal paradises. Nueve Tribuna is suitably indignant here.
‘As Matt Taibbi once put it, Goldman Sachs, the world’s most powerful investment bank, is like “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” The way things are heading in Spain, however, the dreaded cephalopod may be on the verge of losing one of its tentacles...’. Good stuff from Wolf Street.
Hacienda has made concessions in tax-credits for foreign film-makers to shoot scenes here – Variety has the story.
Politics:
Autonomy Politics: Ciudadanos, now very much a political heavyweight, says it will support Susana Díaz (PSOE) candidacy in Andalucía and that of Cristina Cifuentes (PP) in Madrid. Part of the deal in both cases is firstly to control corrupt practices – removing all those under investigation for mal-practice – and secondly to agree to ‘primaries’ to choose future leaders. Thus the Barcelona-based party will be a ‘king-maker’ in those two regions. The larger plan of Alberto Rivera is the take the centre space in preparation for the General elections later this year. El Mundo explains further the price both senior politicians and soon-to-be-Presidents must pay – although oddly, there’s no mention of Manuel Chaves in the treaty and Ciudadanos is now prepared to wait for a ruling from the Supreme Court on the Andalucian ex-President’s status. In Madrid, the first vice-presidency goes to Ciudadanos, in Andalucía, the party says it will remain in the opposition, but allow Susana Díaz to preside over a minority government. Público criticises a party that says one thing and does another. Did Ciudadanos supporters understand quite which concept they were voting for – ‘Change’ or was it ‘Compromise’?
Headline at El País in English: ‘Socialist chief asked PM not to pass new laws before general election. Lunch meeting between Pedro Sánchez and Mariano Rajoy went “very badly,” say sources.
The (probable) provincial City Halls come Saturday by party here (map).
Felipe Gonzalez rather fancies himself as an international statesman, and was briefly in Caracas this week in the hope of meeting two imprisoned opposition leaders. He was unable to make contact however and soon left the country. A leading Venezuelan politician called Jorge Rodríguez allowed himself some fun at Felipe’s expense: ‘He is one of the most notorious lobbyists the world has seen’, said Rodríguez, who then accused the Spanish ex-President of a series of improprieties, including being ‘known while President as Mister Twenty Per Cent’. El Mundo relishes telling the tale here. A similar version (with a bit more cheek) appears in Cuba Información here.
A press release: ‘On Tuesday 9th of June Rogelio Mena, candidate #1 on the PSOE party list for Albox (Almería) was convicted of denying information to the opposition and sentenced to disbarment from office for two years and six months. The sentence is subject to appeal in a higher court. According to the code of ethics of the PSOE, Sr. Mena cannot take office in these circumstances and his fellow party members are not permitted to support him. On Wednesday, all elected PSOE party members on the list have voluntarily resigned from the party until such time as a final sentence against Sr. Mena has been handed down 'in support of his presumption of innocence'. This means that on Saturday 13th voting will take place to constitute a council and elect a Mayor for the next four years with nine unaffiliated councillors, seven PP councillors and one Cilus councillor’. The Second-in-Command of the PSOE is Maura Hillen, President of the AUAN. She says she will not stand – if chosen by circumstance - as mayor. (Background story from Almería Hoy aquí).
Corruption:
The anti-corruption police arrested another swathe of Andalucían gumbahs this week, for their part in the Operación Edu fraud. Thirty seven senior politicals, with, according to El Confidencial, a further 100 arrests planned in the next two weeks.
The Valencian politician Rafael Blasco (PP), sentenced to prison for spending 1.6m euros of charity money destined for the Third World, (!) is finally off to whichever prison he prefers for a six and a half year spell. The story in El Mundo.
Brexit:
‘EU referendum: 'Yes' is ahead, but 'No' is underpriced’. A study from YouGov.
Various:
El Heraldo de Aragón has bought Spain’s main free newspaper 20 Minutos from its Scandinavian owner Schibsted. Story at El Confidencial.
The Minister for Energy has tightened still further the rules on privately-used alternate energy sources and, in a new ruling, has banned autonomous regions (particularly Catalonia, the Balearics and Navarra) from legislating for their easing. Spain’s perfect situation for solar and wind-driven energy, when for private use, is a minefield designed, evidently, to protect the major power companies. VozPópuli explains. As for the famous Tesla Powerwall battery, which stores home energy efficiently (with 40,000 already ordered for Spain), home-owners must expect a blistering tax on these, says El Confidencial. In short, you give your excess energy free to the power company, and you pay them for the privilege of taking it and you pay a tax for storing your own home-generated power.More here.
The average Spaniard apparently consumes 2,481 cigarettes and 113 litres of alcohol each year says El Ideal, which had to go outside for a quick smoke after publishing the information. That’s up to 282€ per annum on smokes and another 686€ on booze.
La ONCE, the charity that has an exclusive charter to run a daily lottery, is pressuring its vendors to sell more tickets, with a minimum number sold, or to face losing their sinecure.
A clever clogs from Galicia registered the Sun as belonging to her in a notary in 2010. She has been selling chunks of one square metre for one euro. So far so good, but she is now being sued by those with skin cancers and sun-burns, according to Público here. More about this peculiar property-owner and her activities over at Metro (in English) here.
El Diarioreveals that customers pay 24 times the cost of producing hydroelectricity in Spain.
An introduction to the Lladro figures over at Eye on Spain.
See Spain:
‘Top 10 UNESCO World Heritage Sites Spain’ – another list: good photos and suggestions.
‘It has been bombed, burned and smashed into pieces. Now, after nearly two decades of restoration work, Spain’s only sculpture by Michelangelo is triumphantly on display at the Prado museum, its turbulent history merely hinted at by cracks and burn marks...’. Story at The Guardian here.
Spain’s twelve oddest beaches. Some disappear, some are muddy; all are astonishing. Here.
An Update on the Greek Question
by Andrew Brociner
There is some suspense leading up to the end of the month as the modern Greek drama unfolds. And while others might be comfortably watching in their theatre seats, the action might ultimately have consequences on some of the spectators as well.
In 2012, Greek debt-to-GDP targets were agreed upon with the IMF: 175% by 2016, 124% by 2020 and “substantially lower than” 110% by 2022. This trajectory is looking doubtful at the moment, since Greek debt has been mounting since 2012:
The debt forecast for 2015 is 180% of GDP. The Greek debt-to-GDP ratio does not seem to be on a sustainable path. It is of not much use trying to impose austerity measures either since, as we have seen in a previous issue, these tend to reduce growth even further. And, in any case, this is not something the current Greek government wants to negotiate, since it was voted on an anti-austerity programme. Austerity has, understandably, wreaked havoc among the Greeks.
Greece actually achieved a budget surplus last year of 1,7% (Spain had a budget deficit of
– 2,3%), but this has now turned negative again. This certainly does not help the debt situation. And Greek GDP has continued to be very weak – after growing by 0,8% last year, it is now negative again: – 0.4% in the fourth quarter of 2014 and – 0.2% in the first quarter of this year:
This means that, sooner or later, Greece will not be able to generate enough income to meet debt payments, which in turn implies that further funds will not be forthcoming, since the IMF will not lend further without some sort of guarantee that the country can meet payments. And since payments are due by the end of June, short of pulling a rabbit out of a hat, it looks as though there are no longer many alternatives left if we are to avoid a Greek exit from the euro: its European partners will have to write off a large portion of the debt. By July 1, Greece will need fresh funds. While this could set a precedent, a much greater precedent would be set by Greece actually leaving the euro, since, apart from the economic consequences, things could start to unravel from there. While this play is ostensibly about Greece, those in the row of seats occupied by the euro periphery countries will be watching the action closely.
Finally:
A jolly song from Orquesta Mondragon (JavierGurruchaga) – ‘Viaje Con Nosotros’ here.
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