Spanish debts to increase by 50.34%
The Strategic Research Centre of the renowned EAE Business School predicts a 50.34% rise in Spanish debts over the next 5 years. In their report they say that by 2015 the debt will 1 billion euros; 81.99% of Gross Domestic Product.
We now see why Zapatero does not want to stand again !
Ratings of two more saving banks downgraded
The need by two saving banks' for fresh capital to comply with the new solvency requirements has led to several of them offering bonds to the public. However, the Rating Agency Fitch has classified the bonds at BB+, down from BBB-, meaning they are “rubbish bonds”.
The two banks affected are the Catalan Unnim (the result of a merger between Caixa Sabadell, Terrassa and Manlleu) and the Galician Novacaixagalicia.
In both cases, Fitch referred to their 'substantial exposure' to the property market. Loans by Novacaixagalicia to the property sector represented 23% of all outstanding loans at the end of 2010.
City doubts Spanish economy
City Bank, in a study called Global Economics View, gives a sordid view of Spain’s economic future up to 2050. It expects growth in the Spanish Gross Domestic Product to 2030, to be the lowest of all countries analyzed, and that in the years between 2010 to 2015 it will even be negative, - 0.4%. It anticipates Spain will, in the coming 40 years, cease to be one of the 10 leading economies.
City believes growth in the national economy this year will be only 0.7%, far below the aim of the Government's 1.3. Only with a growth of above 2% can new jobs be created. The International Monetary Fund has recently predicted growth of 0.8%.
Salaries: Down for workers, up for bankers
According to the company Michael Page, Spanish employees wages are below the European average. Average salary in Spain is 22,000 euros per year, the European average 35,000.
However, senior management in Spanish bank are better paid. Alfredo Sainz, CEO of Santander received 9.17 million euros last year; Francisco Gonzalez, his colleague in BBBV, took home 5.32 million; Emilio Botin, Executive Chairman of Santander and it's biggest shareholder, received 3.86 million in salary (in addition to share dividends) and his daughter Ana Patricia Botin, Executive Chairman of Banesto, was paid 3.48 million euros.
Spain great creditor in Portugal
Spanish banks hold 6,500 million euros of Portugal's public debts, more than the 6,300 million held by German banks and 4,600 by the French, thus Spain has the largest debt exposure to the Portuguese economy.
With the combined debts of Portuguese banks, private companies and families Spain's exposure reaches 70,000 million euros. The loans have been advanced mainly by the sister companies of Spanish banks, including Santander and Popular.
It is presumed Spain will have to guarantee 5,000 million of the 80,000 million euros of Portugal's rescue package.
ETA terrorists shoot at police in France
Two suspected ETA terrorists shot their way out of a police roadblock in central France on Sunday; however, they were later found in the Department of Creuze and arrested. Both are suspected of having taken part in bomb attacks. One police officer was injured in the exchange.
This incident was subsequent to the “cease fire” declared by the ETA terrorist gang on 10th January this year. The “cease fire” must be seen as a manoeuvre to allow their candidates to stand for election in the May local elections.
Corrupt candidates: Rajoy looking the other way
The national leadership of PP has approved their candidate lists for the regional elections taking place simultaneously with the local elections on 22nd May in the Valencia Region. Ten of those on the list are implicated in corruption cases. One being the Regional President, Francisco Camps; the other the previous Regional General Secretary, Ricardo Costa.
PP President Rajoy's retorted to the press when asked about the inclusion of the previous general secretary was, “Costa, who is that?”……..
5,870 companies in Andalusia accused of misusing €23 million
5,870 companies in the Andalusia Region are accused of allegedly misusing €23 million of EU aid granted for jobs creation. In order to qualify for EU grants worth between €1,500 and €3,000, these companies were expected to offer jobseekers permanent contracts and keep them on the payroll for at least four years. However, according to Spain’s Guardia Civil investigators, in at least 3,790 cases the new employees were fired as soon as the grant was paid out.
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