Banks and saving banks, new worries
The Government has demanded banks increase their principal capital to 8% and saving banks 10% before 10th March. The saving banks especially are now trying to find new investors, but investors are reluctant to step in due to the large loans advanced to shaky municipalities and regional governments. The banks have provided the town halls with 47,000 million euros in loans; the saving banks 25,800 million.
Value of building land falls 65%
Real estate consultancy, Acuna & Asociados, says building land in the big cities has fallen 65% in value since the peak of the building boom. This corresponds with Banco de Espana's 2010's valuation, that the value was down 50 – 60%. Real estate agent and author of the book “Adios, ladrillo, adios,” Jose Luis Ruiz, reports that building land with an urbanization plan, cannot be sold without a discount of more than 70%.
Gaddafi, promotion in Marbella
The Spanish Government has decided to freeze all assets of the Libyan leadership. This includes 7,065 hectares of land at La Resinera in Benahavis (adjacent to Marbella). Gaddafi's intention is to build a congress palace and 1,915 houses around a golf course; however, the project has not been approved because it goes against the planning of the 4,000 inhabitant municipality.
Gaddafi has several other investments in Spain, including vehicles, 2 villas on the Golden Mile between Marbella and San Pedro de Alcantara, as well as properties in Nerja, Sotogrande, Sevilla and Granada.
The value of the La Resinera project according to an expert is, “impossible to calculate, as agricultural land maybe between 5 and 10 euros per m2, but if the project is approved this may be multiplied by 10 ………”
Unemployment up 1.6% in February
Unemployment in February reached 4.3 million, an increase of 1.6%. The biggest increase was in services (tourism), agriculture, industry and construction. The regions most affected are Andalusia (14,086 new unemployed) and Catalonia (12,988).
“Country Risk” increasing again
Due to the economic risk of the country, the premium Spain must now offer pay on new bond issues has rocketed again to 220 points. One of the reasons may be the new danger signals coming from neighbouring Portugal, close to coming “under administration.”
Speed limit of 110 kmh on motorways
The Government has decided to reduce the maximum speed hour on Spanish motorways to 110 km per, to save petroleum. Due to the crisis in North Africa and Middle East, the price of petroleum on the world market has increased to 115 $ per barrel (Brent Crude).
In their election program, for the municipal and regional elections on 22nd May, the opposition party PP has said the municipalities and regions will be regulating the speed limit on roads not included in the national network.
Euribor (and mortgage interest) increasing
The Euribor has increased to more than 1.7%, almost half a percent above that at the end of February 2010, when it was 1.225%. Monthly repayments on an average mortgage of 140,000 euros over 25 years will be up 396 euros.
Less unpaid bills
In 2010 Spanish businesses reported they had 4,249,360 unpaid bills, with a total value of 7.415 million euros. This was down 24.9% on 2009. In the Canary Islands the number of unpaid bills increased 5% over the 2009 level, in the Balearics 4.8 and Madrid 4.6%.
Commercial deficit growing
Spain's commercial deficit increased 4.2% in 2010, to 52,283 million euros; mainly as a result of the increasing price of imported oil. Almost all export sectors increased during 2010, up by an average of 17.4%. Export of machinery was up 15.3%, cars 9.1, non-chemical raw materials 26.7% and chemical products 23.3.
Spain sells military material to Libya
Amnesty International has accused Spain of selling military material to Libya, Morocco, Egypt, Saudi Arabia and Bahrain. The Spanish government denies any such sales have taken place during the uprisings, however, Amnesty says that weapons sold by Spain during 2010, which amounted to 800 million euros, are now being used against civilians.
Car production falling
Car production fell 3.4% in January, compared with the same month in 2010, to 192,142 units. The retraction is due to decreases in sales to the European market.
Sales to Italy fell 20.7% and to UK 11.5%. Those two countries account for 23% of Spanish car export. Nine of every ten cars now produced in Spain are exported. Car sales in Spain fell 23.5% in January, to 53,632 units, the lowest since 1993.
No crisis for big companies
Directors of the major companies listed on the Ibex stock exchange have not felt much of the crisis. In 2010, on average, Directors increased their salaries by 19.14%; Gamesa increased Directors salaries by 59%, Banco Sabadell 31 and Gas Natural 29. The biggest earners were Alfredo Saenz of Banco Santander, who received 10.2 million euros in 2009 (the 2010 figure not yet known) Jose Antonio Tazon Garcia, Amadeus, cashed 10 million, Ignacio Sanchez Galan, Iberdrola, 5,347 euros, Francisco Gonzalez, BBVA, 5,316 and Antonio Brufau of Repsol,4,589 million euros.
Unio Mallorquina dissolved due to corruption
Due to extensive corruption by it's leaders, the Mallorca regionalist party Unio Mallorquina has been dissolved. We have reported on this on several occasions. Some of the leaders have registered a new party called Convergencia per les Illes Balear and is aiming to present lists at the municipal and regional elections on 22nd May.
77,476 foreigners registered for voting in Alicante Province
Alicante Province, with a total of 77,476 foreigners registered to vote in the 22nd May elections, is the province with the most foreigners registered. If they all use the vote they may be a deciding force in municipalities like Alcalali (436 EU citizens registered) Alfaz del Pi (2,516), Altea (1,662), Benissa (2,162), Benitachell (1,323), Finestrat (1,032), Calpe (4,323), Javea (4,153), La Nucia (3,238), Orihuela (4,538), San Fulgencio (3,212), Santa Pola (1,741), Teulada (3,772) and Torrevieja (6,361).
The total number of Spanish citizens registered to vote in the province is 1,191,911.
Justice delayed….
The first of 12 criminal trials involving the mayor of Zurgena , Candido Trabalon and members of the previous town council, planned to start in the second week in March has been suspended due to a procedural issue. The judge made the order to allow the town council (as an entity) and the insurance company, to present their defence evidence, because they may be ordered to pay damages. The case goes back one step but continues.
Some 30 people, mainly British citizens, are expected to give evidence in the case, having allegedly invested in houses with illegal building licences. The case relates to the construction of 53 houses in the areas know as ' Barranco de Los Pinos' and' Cortijo Zurano.” The mayor is accused of authorising, through the concession of building licences and plenary agreements, the construction of houses on land not zoned for building knowing that this was illegal.
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