Enviado por José Antonio Sierra
Spain Today by Lenox Napier
España Hoy por Lenox Napier
Business Over Tapas
A digest of this week's Spanish financial, political
and social news aimed primarily at Foreign Property Owners:
with Lenox Napier and Andrew Brociner
email: businessovertapas@gmail.com
Note: Underlined words or phrases are
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Business over Tapas and its writers are not responsible for unauthorised
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11 February
2016 Nº 147
Editorial:
Tourism is our
greatest industry, and it is growing each year. No doubt, unrest elsewhere
helps fuel Spain’s growth in this field. It seems that everyone chooses a
holiday here – it’s close to home, relatively cheap, warm and easy beaches (and
the Mediterranean without a tidal pull). The food is good, the drink is easily
available and there’s nothing much here that bites, stings or poisons (although
the British are very
worried about the Pine Processionary caterpillars). Rather than bless their
good fortune however, the larger hotel companies and apartment agencies – as
have many sectors in Spain before them – are now talking of ‘unfair
competition’ from small-scale operators – those who try to make a small living
from the crumbs that fall from the table. There’ll be no crumbs, say the main
players, and the legislators once again listen.
…...
Housing:
House sales are up, says
El País, with 2015 showing an increase in sales over the year before by
11%, with 354,132 homes sold, of which 78% were second-hand homes.
‘The Spanish real estate market is showing signs of a slowdown in the
face of headwinds caused by political uncertainty, warns one of the
associations of estate agents in Spain.
Madrid’s College of Real Estate Agents (Coapi) has warned that the
political instability resulting from the inconclusive General Election in
December is starting to undermine the confidence of buyers and investors. “Buyers
are proving ever more reluctant to close deals, preferring to wait and see what
happens on the political front,” say Coapi, in a recent press release...’. Story
at Mark Stücklin’s Spanish Property Insight.
From the same
useful source comes:
‘Owners who rent out their Andalucian homes to tourists will have three months
to register with the local authorities or face stiff fines, reports the local
press. The regional Government of Andalucía, known as the Junta, has just
passed a decree regulating tourist rentals in the region, following in the
footsteps of other regions like Catalonia, the Balearics, and the Canaries...’.
The French Institute of Geopolitics says
that the Region of Murcia is the
leader in Spain in urban corruption. It adds that ‘over fifty per cent of all
Murcian municipalities have town hall urban corruption issues’. Story here.
The Spain Buying Guide, brought to us by Kyero, can provide you with vital information, tools and tips to
help make your property purchase a safe and successful one. The Spain Buying
Guide is free, here.
(Comments, anyone?)
‘Finding Aldea: Engineers and artists buying abandoned
village to start Utopian society, and you can join them. A group of young
professionals in London are trying to buy an abandoned village in southern
Spain so they can create a whole new community, and they are seeking 150 people
from all walks of life who would be keen to give up on urban life and join
them...’. From
The International Business Times.
…...
Tourism:
Great news for the Spanish economy – foreign tourism was worth 67,385
million euros last year. The story
at Nexotur. In other good news for the sector, British agents are reporting
that bookings for Spain for 2016 are up by 27% over last year at the same time.
‘Health tourism is
growing in Spain at a rate of 20% per year, in both revenue and patient volume.
It is estimated that the sector has brought more than 500 million euros into
the country in 2015. Globally, the health tourism industry generates more than
75,000 million euros every year. Iñigo Valcaneras, the director of Spaincares,
the organization that released the data, commented that while the growth has
been maintained, Spain, at the moment, is getting only a small share of the
potential market. “We were looking at 500 million euros, while I believe we
should be among the 3 or 4 countries capturing most of the business," said
Valcaneras. “Spain has all the potential to be one of the leading countries in
health tourism globally."...’. Story
found at Tourism Review.
…...
Finance:
Spain, says
El Mundo, quoting a study by Bloomberg, ‘...is one of the World’s
ten most miserable countries’. Indeed they give it sixth! The study is based on
unemployment and inflation in sixty three countries and shows the most
depressed economies in a ‘Misery Index’. The worst? Venezuela.
It’s not just the
paucity of jobs in Spain, but the quality of them as well. The OCDE says that
Spain has one of the worst ‘quality of jobs’ rates of its 32 member states. El Huff Post has the story here.
‘Nearly six
million wage earners are paid less than the minimum wage. UGT union notes since
the start of the labour reform the minimum wage has only increased by 7.2 €’.
Business news from Typically Spanish
here.
Spanish banks took
19,300 million euros just in commissions last year, according to Expansión here.
That’s an increase of 5% over 2014.
…...
Politics:
‘If a fresh
general election were to be held tomorrow, the conservative Popular Party (PP)
would win again, a new poll by the Centre for Sociological Research (CIS)
shows. The survey has acting Prime Minister Mariano Rajoy down as the winner
with 28.7% of the vote, practically identical to what he obtained at the
inconclusive December 20 election... Story
at El País in English. (‘...would win again...’ they mean, ‘would
get the most seats’)
An opinion
piece from El Diario says that
the only possibility of avoiding fresh elections (maybe) in June must lie with
a PSOE-led government with both Podemos and Ciudadanos on board. Nevertheless,
Alberto Garzón (with just two deputies) wants Izquierda Unida to be part of the
project too. Story from Nueva Tribuna
here.
When Pedro Suarez
talks of his party’s rejection of ‘revolving doors’ – senior politicians who
end up on the board of the electric company, or with the gas people – he didn’t
mean Trinidad Jiménez, an ex-minister of Zapatero, who has just joined
Telefónica in a senior position. An unhelpful Tweet from Pablo Iglesias didn’t
help: ‘Now Trinidad goes to Telfónica. This is what we mean when we say we
trust actions, not pretty words’.
To make things a
little bit worse, another ex-minister, this time Elena Salgado, has just
accepted a chair on the board of Nueva Pescanova, the bank-rescued fish people.
This is not Elena’s first board position, as she had been with Endesa in Chile
since 2012, shortly after leaving the government as Vice-President. Story
at El Ventano.
The PSOE appears
to have 'forgotten' that is campaigned against the Ley Mordaza - the sweetly named 'Citizens Protection Law'. Story here.
Headline of the
week: ‘Jorge Fernández Díaz (the acting Interior Minister and author of the
infamous Ley Mordaza) believes that
ETA is praying for a government of PSOE and Podemos’. The very thought of such an alliance, with
the support of the PNV (Basque independent conservatives), would be ‘lethal for
Spain’, says the politician. Story here.
The PSOE is so angry about this peculiar claim that they have asked for ‘an
urgent appearance in the Congreso by Fernández Díaz to explain his remarks’. Report
at Europa Press.
One worry over a
new government must be for those who had a job thanks to the old one – in this
case – 4,000 public positions could be changed: councils, confidential
advisers, administrators... some could even end up unemployed, says El Mundo here.
In an interview
with Canal Sur TV, as reported
in Ideal, Spain’s ex-president
Felipe Gonzalez, who prefers that the PSOE should make a pact with Ciudadanos,
and not with Podemos, says that if it all ends in tears, there could be fresh
elections sometime in September. He also recommends that Susana Díaz should
back off from any attempt to wrestle control of the party from Pedro
Sánchez.
There can be no
doubt – what Andalucía needs in another political party. And so it was: the
‘Somos Andaluces’ nationalist party is
announced...
…...
Corruption:
It seems that the
embarrassment for the PP that is Senator Rita Barberá could now be coming to a
head. While she has been protected through a manoeuvre to keep her immunity
despite any fresh elections, the anticorruption prosecutor from Valencia is
preparing a case through the Supreme Court to try her for what may become a
number of offences following information received from employees of the
Valencia town Hall. More at El Mundo
here.
The
Vice-councillor for Equality at the Junta de Andalucía has resigned following
an announcement of his part in the investigation into the ERE ‘so as to defend
his innocence’. He is one of fifteen new ‘accused’ – this time, in
relation with the Andalucian Agency of Water and the Environment.
Teresa Rodriguez,
the colourful leader of Podemos in Andalucía, says that as far as corruption
goes, ‘Andalucía is becoming the Valencia of the South’. Report
at Ideal.
A new conservative
judge is now in charge of the inquiry into the ERE scandal in Andalucía. El Diario says
that we can now expect things to move forward rapidly.
El Mundo reports
of a cartel of aerial fire-fighters (‘El Cartel del Fuego’) who paid out bribes
in exchange for contracts in various parts of Spain for many years, notably in
Valencia and Catalonia.
…...
Catalonia:
The Superior Court of Justice for Catalonia considers
that Artur Mas committed crimes worthy of a prison sentence of up to two years
with his anti-constitutional elections of 9 November last year.
The Vice-president of Catalonia and councillor for the Economy, Oriol
Junqueras, is setting up a Catalonian tax-collecting agency. Story
at Invertia.
In political news
– the Corrent Roig party is leaving its companions from the CUP (the anarchist Candidatura
de Unidad Popular). Not radical enough? The website of the Corriente Roja International Workers League Fourth Internationale explains
here.
…...
Courts
Coverage
over at El País in English: ‘Infanta
Cristina returns to court for restart of Nóos corruption trial. Spanish royal
will be the last to take the stand at graft trial in Palma de Mallorca...’.
One story
attracting attention – since it is only peripherally political – is the man who
worked in the Town Hall of Cádiz between 2004 and 2011 when he retired, being
paid his fourteen months a year salary – 37,000€ per annum, without ever actually setting foot in the building. He has now been condemned to pay back 26,900€
(the maximum allowable by law) to the ayuntamiento.
Story
at Público. More at El Mundo here.
…...
Brexit:
‘What would
Britain leaving the EU – better known as a ‘Brexit’ – really mean? And what
would an independent UK mean to expats in Spain? It all depends on who you
listen to and – more importantly – who you believe. Eurosceptics talk about a
brave new world with the UK cut adrift from the EU, while Europhiles (EU
supporters) warn of a dark and isolated existence should Britain cut ties with
Europe...’. article
from The Olive Press.
…...
Various:
Andalucía has a rule that forces residents to pay a high premium in taxes
for inheritance (currently, anything over 170,000€ will be taxed). What’s to
do? Well, one can always change their domicile to another part of Spain (where
you pay a far lower tax).According
to El Confidencial, around 40,000 Andalucians join the padrón in Madrid every year for this
very reason (...and pay just 1%).
POLL: Have you decided
to spend less time in Spain because of the new tax declaration of overseas
assets (Modelo 720)? See back issue and comments from Eye on Spain here.
The site also shows that 34% of Britons living in Spain now do so for 4-6
months per year.
For once, the Junta de Andalucía has
listened to reason. The plan to build a cafetería
and nick-nack shop on the unspoiled beach at Mónsul, in the Cabo de Gata, has
now been annulled by the people at the Medio Ambiente y Ordenación del
Territorio in Seville following the huge outcry from the public.
Adblock or similar ‘add on’ use is on the rise, says
Malavida noting that it is now used
by 14% of all Spanish surfers. Adblock is a useful tool which removes
extraneous advertising from web-pages, including YouTube and Facebook.
El País has a great photograph of Albert Rivera holding out his hand in
friendship to Pablo Iglesias, who doesn’t respond. Sad to say though, the
photograph has
been manipulated.
Print newspapers
are in a terminal decline, as figures in this
graphic show.
What do foreign
journalists think about Spain, asks Vanity
Fair. Six journalists from Berliner
Zeitung, the Wall Street Journal,
La Nación, Die Welt, The Times and El Universal answer
this question (article in Spanish).
Plundering Endesa: ‘Imagine a
business, maybe an Italian business, buys the Royal Palace in Madrid.
All the paintings, the furniture and
other treasures are taken to a museum in Rome as
the business invests just enough to
keep the building in shape enough to continue charging admission to tourists who make the
obligatory visit to the monument. All this before the silence
of the government, the main opposition party and the
mainstream media...’. A little bit exaggerated, but that’s what’s happening. Story at La Marea.
From
The Telegraph: ‘Zika outbreak 'could
infect hundreds of thousands of people in Spain'. Scientists are concerned that
the tiger mosquito, which is rife in Spain, could infect hundreds of thousands
of people with the Zika virus...’. A
little overwrought? Maybe. From
Público (Monday): ‘the Centre for
Coordination in Health Emergencies says that there are nine cases of Zika in
Spain but that ‘it is only dangerous for pregnant women’.
‘Spanish water
rights fight raises fears for Ebro delta. Environmentalists say one of Europe's
most important wetland areas is under threat as Spain and Catalonia argue about
the future of the Ebro river’. Headline from
the BBC.
‘As Valentine's
Day fast approaches, The Local takes
a look at the top tips for dating Spanish men. Dating can always be a bit of a
minefield, but in a foreign country it can be even more problematic, and Spain
has its fair share of cultural quirks when it comes to looking for love. From
making sure you befriend your potential mother-in-law to never making plans too
far in advance, here are some important tips to keep in mind when dating
Spanish men...’. Here.
The Telegraph has some
fun: ‘Spain opts for English-language song for Eurovision 2016. Spain’s
dire Eurovision results seem to have convinced fans of the competition that it
is time for a change...’.
Biting your nails
is not a good idea while driving. A driver got fined 80€. A few other good ones
include ‘speeding while in the back of a tow-truck; driving with your hand
outside the window; while not wearing a shirt; parking on the beach in the
wrong bit of sand; having the music too loud... and others. El Mundo reports the weirdest
ways the police can lighten the motorist’s wallet.
Five red tape
essentials for new arrivals in Spain. A useful
guide from The Local.
Spain’s five
poisonous spiders – include the Black Widow! Here
they are.
…...
See Spain
Ten
things you didn’t know about Barcelona from Advance Moves.
WikiTravel ‘the free travel
guide’ has its useful write-up of Spain here.
…...
The Housing Sector, Continued
by Andrew Brociner
Last time, we
started looking at the housing sector to see how it has been since last year.
The first data we used from INE shows that prices are still low, with a small
increase possibly beginning. We now continue to examine this finding.
If we look at the
price index change by region, we can see that while Andalucía is at the
national average, three regions in particular – namely, the Baleares, Madrid
and Cataluña – in that order – are above the national average. The Baleares
are, in fact, at twice the national average.
 |
We can look at the
housing price index by region to see what is behind the movement in the change
of prices.
Looking at the
index by region, we can see that both Cataluña and Madrid suffered much larger
losses than other regions, 46% and 43% respectively. The national average was a
decrease of 37%. If they are now increasing at a faster pace than the national
average, it is because their troughs are far lower. Andalucía fared better than
the national average, with a decrease of 30% and its change in price is at the
moment in line with the national average, which shows how well it retains its
value.
Given that there
have been two quarters showing some incremental increase in prices and that
only a few regions seem to be propping this up, the results are still too
tenuous to conclude that we are in some kind of trend, especially for the
nation as a whole, so we will wait and see more data to confirm if this is
sustained. We will continue to look at this next week.
…...
Letters
A couple of
readers with Apple Mac computers are
having problems opening links. A message from one recommends: '...to open up
the BoT in Preview and not in Word'.
…...
Finally:
Las
Meninas by Diego Velazquez. Is this the best painting ever? Video talk here.
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