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Business over Tapas (Nº 204)
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Business over Tapas (Nº 204)

By Lenox Napier and Andrew Brociner – Sent by José Antonio Sierra (CCLAM)

jueves 13 de abril de 2017, 22:46h

14APR17.- A digest of this week's Spanish financial, political and social news aimed primarily at Foreign Property Owners: With Lenox Napier and Andrew Brociner. Consultant: José Antonio Sierra. For subscriptions and other information about this site, go to businessovertapas.com - email: [email protected] - ***Now with Facebook Page (Like!)*** Note: Underlined words or phrases are links to the Internet. Right click and press 'Control' on your keyboard to access. Business over Tapas and its writers are not responsible for unauthorised copying or other improper use of this material.

Editorial:

The Spanish politicians always call them ‘La banda terrorista ETA’, as if there were any doubt, but the rest of us use the short form ETA. The Basque terrorists. Now, like the IRA before them, they have given up the armed struggle and handed in their arms and explosives. Unlike the IRA, however, it’ll be a long while before any of them are allowed into politics. The Spanish authorities are not letting ETA give up without a fight, as they have been good for political purposes – particularly to do with repression, police numbers and the search for victims. ETA of course, wanted to create Euskal Herria – an independent Basque Country (for some reason, better than twice the size of the current Region, to include three provinces in France, and with its capital city in what is the neighbouring autonomous region of Navarra: Pamplona). Apart from their remarkable assassination in 1973 of Franco’s chosen successor Admiral Carerro Blanco, the ETA have been known as little more than a bloodthirsty criminal band of murderous thugs. So, society itself won’t miss them. Their one injustice, in many peoples’ minds, is that their imprisoned band members are kept – rather unfairly – in gaols as far away from the Basque Motherland as the Ministry of Justice can engineer... usually in Valencia or Andalucía. An unsympathetic ABC discusses this here.

The BBC reported on Saturday 8th that ‘The Basque militant group ETA has begun handing over its remaining weapons, ending the last insurgency in Europe. At a ceremony in the southern French city of Bayonne, an inventory of weapons, and their locations, was passed to the judicial authorities. ETA killed more than 800 people in some 40 years of violence as it sought to carve out an independent country straddling Spain and France. It declared a ceasefire in 2011 but did not disarm...’. Here’s the Wall Street Journal: ‘...The announcement of the arms handover comes more than five years after ETA declared a cease-fire to end its decades long bloody campaign for an independent Basque Country, which claimed more than 800 lives...’. The decommissioned arms include ‘...118 guns, nearly 3,000kg of explosive materials and more than 25,000 rounds of ammunition...’. says The Guardian here. La Razón says that ETA is lying and that there are still more arms under their control.

In all, with a few guns out there, a few criminals at large and a few demented supporters, it’s still great news to hear that Europe’s last terrorist group has been closed down for business.

Housing:

Mark Stücklin’s Spanish Property Insight notes that: ‘The housing market is recovering after a deep crisis, but there is no sign of overheating, argues the Bank of Spain. There has been a lot of talk in the Spanish media recently about signs of the housing market overheating, at least in certain areas like Barcelona, Madrid, and the Balearics. The home building industry, or what is left of it, regularly has to argue that signs of recovery do not mean another bubble is inflating, and only the other day Juan Antonio Gómez-Pintado, head of the Spanish Developers’ Association, went on record in an interviewed with the Spanish daily El Mundo saying “I see no risk of another real estate bubble.”...’.

From an article on cash payments from Mark Stücklin at Spanish Property Insight ‘...Undeclared cash payments, known as B or en negro (Black Money), are still prevalent in Spain, according to an article in the Spanish daily El Mundo. I thought they disappeared with the boom. In the past, including the boom years, under-the-table cash payments were a feature of many property purchases in Spain, at least in the resale market (far less so in the new home market). Many foreign buyers were horrified, but it was cash or no deal...’.

‘Sotogrande: Southern Spain’s Sweet Spot. The luxury resort community is attracting a new wave of international home buyers—including some who come for the sun, not the golf’. Headline from The Wall Street Journal. An excerpt: ‘...Sotogrande, a privately owned resort community, takes up 7.7 square miles between Marbella and Gibraltar. First developed in the mid-1960s, it soon became a golf destination and a getaway for Madrid’s professional elite. Now, amid a surge in investment, the area is experiencing a new wave of international buyers seeking a steady supply of sunshine—including some who aren’t that interested in golf...’.

Tourism:

The future of tourism, says Hosteltur in an article here, is sustainable tourism (Blue Flag beaches and the like). This kind of tourism, which leaves things as they should be found, is supported by The United Nations, which has declared 2017 as the International Year of Sustainable Tourism for Development (here).

Spain could receive 83 million international tourists this year, says the Government, as reported by Agent Travel here. From El País in English come similar noises: ‘Spain retains crown as world’s most competitive tourism industry. WEF report highlights good infrastructure, high security levels and rich cultural resources Spain, the defending champion, has managed to hang on to the throne. For the second time in a row, its tourism sector ranked as the most competitive in the world, according to the World Economic Forum...’. Discussing the positive Easter numbers (and tourism as a whole), The Corner notes that ‘...In addition, the Easter week break will create no less than 160,000 jobs, and that’s on the low side: Randstad is estimating a record 162,500 contracts and the experts are talking about an “exceptional” boost at the start of the year, which will delay the announced slowdown in job creation...’.

‘Tourist apartments are devouring the City’, says Público here, in an editorial against Airbnb and similar companies, as long-term rentals for residents become more expensive. Is there any limit to tourism?

‘Bad news for British expats in Spain who make regular trips back to the family nest: Ryanair has threatened to stop running flights in the UK post-Brexit. Admittedly, this is a last resort and worst-case scenario, but the low-cost Irish airline is very concerned about the impact on its operations in Britain once it leaves the EU...’. From Think Spain.

‘Passengers have complained of ‘nightmare’ queues at passport control in Malaga airport.

Beginning on Sunday, flyers have had to form ‘crazy’ long queues just to have their documents checked. “Passport control is crazy at Malaga today,” one told The Olive Press, “There are queues all the way back to the Burger King. “Some people have missed their flights!” It comes after last month’s amendment to the Schengen Border Code, which means border officers must now check the documents of all travellers against several databases including the Schengen Information System, Interpol and registers of wanted persons...’.

Wow, what a fantastic airport! The Murcian government tries to get the Corvera airport up and running. El País has the article and a snappy promotional video here.

Seniors:

‘Imserso’s Social tourism and ‘thermalism’ for the elderly will receive a public grant in 2017 practically identical to that of 2016. According to the General State Budgets, presented recently in the Congress of Deputies, the program of Social Services of the Social Security to older people will be worth 118 million euros, which is 0.4% more than the 117.5 million a year ago. This money is mainly destined towards travel and ‘thermalism’ (visiting health spas), although it is necessary to discount the part used for studies, publications and advertising campaigns related to the active Seniors...’. From Nexotur here.

From The Guardian: ‘The older expats facing poverty – thanks to Brexit and frozen pensions. The fall in the pound’s value coupled with post-EU uncertainty and pension regulations has led to alarm over the plight of many older British expats’. The article looks at one OAP who lives abroad, and notes that she ‘...is one of the half a million or so British people whose pensions have been frozen after moving overseas, a rule that affects many living in – among other places – British Commonwealth countries, including Australia and Canada. Those living in the EU, the US or a list of countries including Samoa, Macedonia and Puerto Rico, get pension increases in line with inflation due to various reciprocal agreements...’. Now, in a week’s time, we shall know about the British parliamentary decision regarding pensions in the post-Brexit EU.

Finance:

From Colin Davies: ‘There's a Financial Times overview of the Spanish economy called ‘Spain: Boom to bust and back again’ reproduced on this post. It seems pretty accurate to me, at least as regards the past 10-15 years. Which I've observed, of course. Oft times not believing what I was seeing. Here's a couple of negative observations from the bad times: PP mayors, ministers and presidents engaged in an orgy of waste, corruption, embezzlement and illegal party funding . . . . The combination of mismanagement, hubris and greed, coupled with a banking system that lent according to political not financial criteria, proved disastrous. Worth a read. Of course, things are much better now and - as a VP of the EU Commission recently said - post Brexit reformed Spain now has a golden opportunity to assume the leadership of Europe...’.

‘The Spanish economy has got off to a storming start in 2017. Gross Domestic Product grew by 0.8% in the first three months, according to the central bank, as the nation extends its three-year recovery with greater momentum. That’s better than the average estimate of economists in a Bloomberg survey, which forecast that the economy would maintain its pace at 0.7% in the first quarter...’. From The Olive Press.

Public Debt won’t fall to under 60% of GDP in Spain until 2037, says the Independent authority for Fiscal Responsibility (the ‘Airef’). More at El Mundo here.

‘Three More Reasons to Worry about the Euro’s Future’ from Wolf Street here.

Around ten groups control more than 4,400 restaurants across Spain (McDonalds, Burger King and so on). Story and list at El País here.

Politics:

‘Spain has hosted a summit of EU leaders as Madrid launches a Brexit charm offensive.

Prime Minister Mariano Rajoy met the heads of France, Italy, Portugal, Greece, Cyprus and Malta in the Spanish capital on Monday...’. From The Olive Press.

The person who would probably have been today’s leader of the PSOE (and none of the current mess would have happened) was Carme Chacón. Chacón was the first female defence minister (under Zapatero), and is remembered for taking the review of the troops, and flying to Afghanistan, while pregnant. She was popular and talented, but she had a health issue. A weak heart. Chacón died this week, aged just 46. El Diario reports on Chacón here. Some videos, plus the announcement of her death, at La Sexta here. Since this is a time of pre-election for a new PSOE secretary, campaigning has in theory been muted following Chacón’s passing, although as a ‘tribute’ to the dead ex-minister, Felipe Gonzalez suggests that it would only be appropriate for Susana Díaz to take on the party mantle!

Susana Díaz warns voters that Podemos and their leader Pablo Iglesias are ‘not to be trusted’. More here.

El País reports that in the latest survey held by Metroscopia, the PSOE and Podemos are neck and neck. The PP is 30.2%, Podemos has 20.7%, PSOE at 20.2% and Ciudadanos are at 17.4%.

‘The British ambassador to Spain, Simon Manley, has recognized the need to clarify the legal status of European expatriates in the United Kingdom. In a speech given at the Pontifical University of Comillas in Madrid on 'The future of relations between Spain and the United Kingdom after Brexit, Simon Manley clarified that "it is necessary to give security and certainty to all Spaniards and Europeans so that they will be able to remain within the United Kingdom when the exit becomes effective ". The ambassador mentioned the 300,000 Britons residing in the Iberian Peninsula and also the more than 100,000 Spaniards settled in the British Isles...’. From an article in El Iberico, a Spanish-language news-site based in London.

Corruption:

A pen-drive has been located which gives information on the illegal financing behind three regional (and national) elections in Madrid for the PP. El Español has the story here.

‘Two Spanish university professors and three other suspects have been charged over the alleged sale of a "fake" cancer drug that raked in more than €600,000, police said Tuesday. In a statement, police said there were "more than a dozen complaints from victims who bought this substance" -- a product that had no "curative effects."...’. From The Local.

The CIS (polling agency) says that preoccupation over corruption is now considered the second biggest worry among Spaniards, with 44.8% of people concerned. More here.

Catalonia:

From The Local: ‘Catalonia's regional parliament, which is dominated by parties that want the region to break away from Spain, approved Wednesday a 2017 budget that includes funding for an independence referendum. The move poses a serious challenge to Spain's central government in Madrid, which argues an independence referendum would be illegal and against the constitution -- a stance supported by the judiciary...’.

Much is being made in the Spanish media regarding frustrated attempts by Puigdemont to obtain backing from the USA for his independence project. Here’s El País.

Gibraltar:

If Gibraltar were to leave the EU, then it would be declared as a ‘fiscal paradise’ by Brussels, says the Spanish Minister for the Economy Luís de Guindos, as reported here in 20 Minutos.

There are just 225 apes on Gibraltar. Churchill thought that if they left, then the British would too. El Mundo looks at the critters.

From El Español: ‘The pressures and threats coming from London over the status of Gibraltar have not worked. The other 27 countries of the European Union have ignored the protests of the British Government and have ratified that Spain will have veto power in any decision on the future relations between Brussels and the Rock. This is reflected in the negotiation guidelines for Brexit proposed by the President of the European Council, Donald Tusk, which have been backed by consensus by the representatives of the member countries during a meeting in Brussels on Tuesday...’.

Courts:

Spanish police have arrested a prolific computer spammer alleged to have hacked the 2016 US elections. Authorities arrested Pyotr Levashov in Barcelona after requests from US authorities. He is thought to be the spammer known as Peter Severa, It is said that Severa worked with Russia’s FSB during the Russian elections in 2012. US authorities have not confirmed whether his work was used in the 2016 cyber attacks on the Democratic National Committee...’. From The Olive Press here.

The prosecutors agree – in a democracy, a comic should not be in fear because of his jokes. An item from Público here.

Brexit:

From The Independent: ‘European Parliament’s chief Brexit negotiator demands Theresa May back Britons who want to keep EU citizenship. Exclusive: The UK Government told The Independent it will discuss any ideas Guy Verhofstadt brings forward’. An excerpt: ‘...Mr Verhofstadt sends a clear and direct message to the Prime Minister that he wants the European Union to make a “generous” offer to people in the UK angry at losing EU privileges. In response to his article a government spokesman has now said that Ms May and Brexit Secretary David Davis are actually ready to "discuss" any proposals that are put forward...’.

A worrisome article from Typically Spanish: ‘Lawyers are seeing an avalanche of concerned British residents over Brexit’. It notes that ‘...If Brexit is consumed, many Britons will have to reapply for residency or work permissions, and if already retired, they must undertake to not be a burden to the Spanish State, by presenting evidence of no criminal record, and a guarantor to hold at least 27,000 € and medical certificates...’.

La Vanguardia has a feature on Adele Theresa Price, the Madrid-based spokesperson for the anti-Brexit group ‘Bremain in Spain here.

British in Europe is a coalition platform for UK citizens living in Europe; 11 citizen groups across Europe representing a membership of around 33.000 Brits are working together to stand up for the rights of UK citizens in the EU and EU citizens in the UK. Here.

Brexpats in Spain here offers both pro- and anti- Brexit articles that readers send them.

From The Sunday Post: ‘Brexit has scuppered Britons’ retirement plans as they shy away from a move to Europe and explore alternatives in the UK. About 45% of people over 50 now say they are less likely to consider retiring abroad...’.

Media:

PRISA (El País, El Huff Post, Cadena Ser, Santillana and others (see Wiki) ) is in a bad way, says a financial blog called inBestia here.

Penguin Random House has bought Ediciones B making it the second largest publishing house in Spain after Grupo Planeta. More here.

An angry reply against The Sun and its current tripe against Spain and Gibraltar comes from Preferente, which says that the iniquitous newspaper is one of the main reasons that Britain has left the EU – ‘the worst decision since Henry VIII gained the British throne’, it says.

The Xpat News on the Costa Blanca didn’t last long. After just five weekly issues, it was bought by its nemesis... and was immediately closed down.

Various:

‘In Spain, 310 robberies are committed at home every 24 hours, with more at Semana Santa. 42% of homes are not insured against robberies and Spain is already the 5th European country with more house-breaks with a total of 113,452 reported last year. More here.

‘Rev up for Europe's fastest rollercoaster as FerrariLand opens in PortAventura in Spain. The Red Force rollercoaster, at the FerrariLand theme park, is also Europe’s tallest taking riders up 112 metres – and clocking in at speeds of 110mph’. The Guardian has the story and a video here. Another video, at The Local, shows a rider being violently struck in the face by a pigeon coming the other way on opening day. Whoops.

Yes, someone has made a study: ‘Balconing is the term that has been given to consciously jumping into a swimming pool from a balcony or falling from height while climbing from one balcony to another in hotels during holidays’. From The Injury Journal here.

Many women say they are being insulted and threatened by anti-abortionists as they approach a clinic for an abortion. The story in El Diario. It can never be easy for a woman to accept the procedure, and insults and humiliation can only be very distressing for them.

Some Legionnaires were invited recently to the Children’s Hospital in Málaga. A small show for the bored and ill children to liven their day. No, says Izquierda Unida making a scandal out of the whole thing – we don’t approve: and they’ve raised the subject in the Andalusian parliament! Somebody later makes the point to me that the Spanish Legion’s song ‘We’re the novios of Death’ may be a little near the bone...

Fruit juice, say nutritionists, is about as close to fruit as watching the game on TV is to taking exercise. A salutary article from El País warns that too many sugary fruit drinks can be bad for you.

Now look, the ingleses have gone and invented a new coffee choice. They’ve gone and called it ‘The Cortado’. An article at Público here.

Around ninety years ago, Aldous Huxley wrote a sonnet about Almería. You can read it at Spanish Shilling here.

See Spain:

‘10 dazzling Mediterranean beaches that are perfect for Easter in Spain as holiday season starts, El País in English visits the best on the coast – culinary ideas included’. Here.

Letters

Dear Lenox -

Whilst I would probably have chosen different language in which to express them (!), I cannot but agree wholeheartedly with the sentiments expressed by your correspondents JD and Lorna A in BoT 202.

I, too, have been surprised and disappointed by the overwhelmingly negative attitude towards Brexit displayed by the editorial team of BoT. I acknowledge the truth of your comment "There is a chasm between pro- and anti-Brexit supporters" but I had assumed that BoT would treat the subject in a relatively even-handed way.

Of course, there's no real justification for my belief - you don't profess to be the BBC of ex-pat journalism (and we all know how unbiased they are!) and your final comment: "In turn, we call the leavers 'Quitlings'" makes it clear on which side of the fence you are firmly located.

Whilst there is about as much chance of changing people's minds on the wisdom of otherwise of Brexit as there was in the early 80s over the divide between Arthur Scargill's miners and the rest of the world, I would offer just one suggestion. Whether one voted for or against, all but the truly blinkered now accept that, like it or not, Brexit will happen. Britain WILL leave the EU and, almost certainly, the single market and the customs union as well.

That being the case, would it not now make sense for everybody to grasp this particular nettle, happily or otherwise, and work towards achieving the best possible result from the process? We often read of the apparent willingness of the EU negotiators to shoot themselves in both feet rather than give an inch (or centimetre?) of ground in negotiations, yet there seems to be a sizeable cohort of Remainers who seem quite prepared to screw up any hope of an ultimately successful divorce by taking an obstinately negative stance on any and every attempt to get a good deal, putting obstacles in the way at every opportunity.

It's rather like the sad sight of Nicola Sturgeon fiddling furiously away with her demands for another Scottish referendum while the Rome of the Scottish economy burns. She seems desperate to leave a benign, successful, profitable union with the rest of the UK in which she is a significant player for a distant, undemocratic, economically-suspect union with the EU, in which she would be a largely ignored minnow. Try as I might, I cannot see the logic there!

So how about taking a different tack: grumble and harrumph if you must - that is your entitlement - but accept that this is going to happen and that the best chance of getting a good result for everybody, UK resident or ex-pat, must come from working together, as the British normally do, to make the whole procedure a success. This might make for a lot more cheerful editions of BoT!

Yours in hope

Phil

I never run articles about the effects of Brexit in the UK – the potential job losses, the xenophobia, the reduction in labour laws, the rise of the far-right etc, because these are internal UK news items, which is not part of the purview of BoT (Although, there’s a good one here written by a British woman who lives in Spain, and here’s an item about the Leicester football supporters in Madrid). Maybe the UK was right to leave the EU. Maybe, too, it’s better for the EU that the UK leaves it. Discussions to be held one day over coffees in a quiet Spanish pub.

However, I must report, as it comes to my attention, any Brexit news which affects either Spain or Spaniards in the UK, or UK citizens visiting or living in Spain. Feel free to send me any positive news connected to these particular subjects that I’ve overlooked and I’ll include them in the Report. As far as making the best of it here, I must remind readers that we ‘expatriates’ have little or no representation or say in Britain’s policies. We would all be delighted if Brexit somehow made life in Spain for Britons better, but that seems disappearingly unlikely.

My final point on this is to recall that many (way better than half) of BoT readers are not British and they will be – hopefully – hardly affected by this approaching storm.

Finally:

A pretty Kurdish Spanish folk mix from Gani Mirzo here.

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