Enviado por José Antonio Sierra
Spain Today/ Actualidad española
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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18 February
2016 Nº 148
Editorial:
The AVE Alta Velocidad Española high speed train
was the brain-child of Felipe González. An amazing 21st century train that
would unite Madrid with his home-city of Seville: at an unheard of speed and in
total luxury. This was the time of the EXPO 92 and the Barcelona Olympics. The
time when Spain was seen to have shaken off the dust of its Francoist past. A
modern Spain: fit to be a partner in the European Union.
As The Economist said
recently: ‘High-speed trains usually depend on public subsidy, yet their
tickets are often unaffordable for many potential users, so they may not fill
enough seats to avoid losses. The counter-argument is that over distances of
300-800km, fast trains between big population centres are quicker and less
polluting than most forms of transport’.
More AVEs were
built, uniting Madrid with Barcelona and later many other capitals: but all at
crippling expense. Inevitably in Spain, corruption was soon found to be
entwined in the AVE business model, with commissions, fraud and waste
highlighting the savage costs to the country.
At over 3,100 kilometres of track, and another 900 under construction, the
AVE is costing Spain dear (better than 50,000 million euros so
far), and demand remains low (at just a
fifth of neighbouring France’s use). The S&P agency is now
saying that Spain should take a long and hard look at its high speed train
network, which it sees more as a political than an economic adventure.
…...
Housing:
‘Annual Spanish
home sales rose 11.1% in 2015 to a total of 354,132 – the second year running
showing a rise, according to the latest data from the the Instituto Nacional de
Estadística (INE). At the same time the number of new build sales has hit a
nine year low, according to figures ... Resale home transactions accounted for
78%, or 276,267 transactions in Spain, a rise of 37.2%. New home sales fell by
a similar percentage, 33.7%, to 77,865 – the lowest figure since the statistics
began in 2007...’. From
OPP Today.
The PSOE in
Andalucía is proposing to ‘regularise progressively homes built in illegal urbanisations across the
region’, according
to El Diario. This would allow
these homes to obtain services – water and electricity... The proposal would be
added to the new modifications proposed for the ‘Ley de Ordenación Urbanística de Andalucía’.
An Almería court has
ruled against compensation ‘for moral damages’ from the Town Hall of Albox to
the British owners of three properties demolished in a local urbanisation last
year, but has allowed a small compensation towards their lost investment.
Tarifa: ‘Metrovacesa, one of the biggest developers in Spain, now owned by a
consortium of banks including BBVA and Banco Popular, and controlled by
Santander bank, will invest €70 million in a mixed-use development including
hotels, commercial space, and up to 250 “upmarket” homes, walking distance from
the beach and Tarifa town centre. The company says the development, called Surf
City (Ciudad del Surf), will be
positioned internationally to take advantage of “surf tourism, the principal
attraction of the area,” in a clear sign that Metrovacesa has international
buyers in mind...’. From
Mark Stücklin’s Spanish Property Insight.
‘A British
property company wants to invest €650 million into Torremolinos to create a leisure centre. Intu Properties tabled the bid to
Torremolinos town hall, after plans to create the centre were unveiled late
last year...’. Story
at The Olive Press.
‘The lure of the pueblo blanco is not solely reserved for
expats searching for a taste of Spain. The country’s national banks are also
turning their attention to Spain’s towns and villages. In a bid to make a quick
buck, Spain’s banks are flipping cheaper property in small and medium sized
towns and turning their backs on larger cities. In the last 12 months Spain’s
lenders have sold 66% of their property portfolio in towns of less than 50,000
inhabitants...’. From
The Olive Press.
One town whose
plans turned to dust between the beginning of La Crisis and the implementation of stricter planning laws is Pioz
in Guadalajara. Each of the town’s population of 3,540 owes around 3,000 euros
in the now rotting infrastructure costs. In Pioz, 7,000 houses lie empty and
there are over 100 kilometres of empty streets, with just three peones to sweep them clean... The
story at Ideal.
More on the new rental rules: From
the Irish Times: ‘Owners of rental
properties in southern Spain face new regulations obliging them to register
their properties as tourist rentals. The Registry of Tourism of Andalusia
(RTA), which includes the Costa del Sol where many Irish people bought property
during the last economic boom, has moved to establish a register of tourist
lettings. Owners will have three months, from May 2016, to register these
properties on the RTA website. The move follows the decision in 2013 by the
Spanish government to relieve the Ley Arrendamientos Urbano (LAU) of
responsibility for holiday rental properties. It passed the task of regulating
these properties instead to the country’s 17 regional governments or Juntas...’.
A lawyer explains the intricacies of the
new rules here.
There are some three to four thousand owners of small-scale rentals in Almería,
says
La Voz de Almería, who will be
affected by the new rules.
…...
Tourism:
A study at Hosteltur suggests
that a ‘Brexit’ (where the UK leaves the EU) would result in an increase in air
fares for British visitors to the European Union. Since Spain’s largest share
of tourists comes from the UK, there could be a noticeable decline in numbers.
The article even makes mention of ‘the 800,000 Britons who are estimated to own
property in Spain and who’s situation would need close study in the event of a
‘Brexit’’. From The Daily Mail comes
a similar
worry: ‘Brexit would end the era of cheap flights and put passenger safety in
jeopardy, claims airline chiefs as 'project fear' kicks into full swing’.
…...
Finance:
Attempts to defund
the alternate energies through legislating against them... for a time.
A conspiracy
theory, nothing more. And yet... El
Diario reports
that foreign multinationals and vulture funds are buying up groups in this
sector. Some examples are given.
The Spanish
minimum wage is very low, at just 655 euros per month. According
to the Noticias de Navarra, and
quoting sources from the UGT, a
third of all Spanish workers, 5.9 million of them, earn even less than this
paltry sum.
A useful guide to
your favourite (or perhaps, least favourite) company. Free information from the Registro Mercantil
at LibreBorme.
…...
Politics:
‘Esperanza Aguirre
has resigned as president of the Madrid PP because of corruption. In an
urgently called press conference in the PP headquarters she announced ‘I assume
the political responsibility for all these years’. It follows her appearance on
Friday before the investigative commission on corruption in the Madrid assembly
when she said ‘Corruption is destroying everyone’...’. Story from
Typically Spanish. Perhaps the second-most important person in
the Partido Popular. Will Rajoy be the next to resign (and open up the party to
a fresh opportunity)? El País in
English has an editorial on the subject here.
Headline
from The Guardian: ‘ 'Worrying and
pathetic': anger in Spain over parties' failure to form government Lack of
consensus remains two months after general election, with Podemos and
Socialists both refusing to give ground’.
The parliamentary
debate to invest Pedro Sánchez as president will begin on March 2nd, with the
first vote held on the following day, says the President of the Congress Patxi
López. Nueva Tribuna has the
story.
‘Spanish
parliament gives Socialists until March 3 to present government. Spanish
deputies set an early March deadline on Monday for Socialist Party leader Pedro
Sánchez to present a government, setting in motion a legislative process that
could lead to fresh national elections by mid-year. Following inconclusive
elections in December, Sánchez is leading talks to try to set up a viable
leftist coalition... From Reuters. Indeed, Pedro Sánchez has the most likely chance of being the next
president, but there remain serious problems. Podemos is a tough nut to crack,
seeking Catalonian rights to a referendum on independence and large tax
increases to pay for social programs. Ciudadanos won’t have anything to do with
them, and vice versa. In the end, abstentions in the Cortes may be the only
hope for a minority government.
Sánchez has an
interesting ally in his attempt to become Presidente.
Step forward Queen Letitia, who reportedly loathes the PP and is a keen fan of
Sánchez and his possible allies. The
story at Hispanidad.
The word propaganda has a slightly broader sense
in Spanish than in English, although here, it is reduced to just one thing. Podemos
has discovered that the PP is financing some 440 web-pages, blogs, and phoney
news-services (and these, just in Madrid
and Valencia) dedicated to spreading false stories about the radical and
perhaps eccentric left-wing party as well as other rival parties and
politicians. Story
at El Confidencial.
The EU has finally
smelt a rat over in Andalucía and is holding
back 795 million euros of ‘FEDER’ money until they are satisfied that the
funds will reach their correct destination.
Quote
of the week: A Madrid PP politician says to the deputies from Ahora Madrid –
‘I’d rather have a companion who stole money, than one who sets off bombs’.
…...
Corruption:
Jordi Pujol is the
man from Catalonia that everyone fears, it seems. The ex-president and current multimillonario has threatened ‘to spill
the beans’ on what he knows if he were to be arrested. It would cause the fall
of Spanish democracy, he says. The threat – incidentally – seems to be working.
The story
at Mediterráneo Digital.
‘The Guardia Civil
raids Madrid Popular Party HQ for illegal financing proof. Investigators also
enter homes of an ex-regional party manager and a businessman’. Headline
announcing more
scandal at El País in English.
The events led to the resignation of Esperanza Aguirre.
So how much money
has been recovered from the ERE scandal in Andalucía? According
to the ABC, the Junta de Andalucía
won’t say. Around 885 million euros are at stake. The two presidents of
Andalucía allegedly involved – Chaves and Griñán – are a step closer to
standing trial for their part in the fraud. The ABC has more here.
Fernando Mut, the
leader of Ciudadanos in the Valencia region has resigned following publication
of his arraignment in the Innova Inquiry. El
Mundo has the
story.
Following from the
Funnydent scandal
in recent weeks, the UDEF anti-fraud police have now arrested thirteen senior
members of another dental franchise – Vitaldent. Four have now gone to prison
including the president of the company. The UDEF have also seized a private jet
and 36 luxury cars. More here
at El País.
The Chinese owned Banco Industrial y Comercial de China
(ICBC) was
raided in Madrid on Wednesday by a unit of the Guardia Civil under orders
from the Anti-corruption Prosecutor following suspicion of money laundering.
Five people were later arrested. They
will not be happy in Beijing!
…...
Courts:
Back in 2012, the Minister for Justice Alberto Ruiz-Gallardón introduced
a new judicial tax on public trials. So far, it appears, 500 million euros has
been raised with this new tax, but – and here’s a funny thing – a spokesperson
for the current Ministry answered a Parliamentary question about this with ‘the
Ministry has no information on this issue’. Where can it have gone? Infolibre
has the
story.
‘Bankia to return
money to all small investors in wake of top court ruling. Lender to give back
stakes to minority shareholders who invested in its 2011 IPO. Bankia is to
return the money that small investors spent on shares when the Spanish lender
began listing on the stock exchange in 2011. By providing refunds with an
annual interest of one percent, the nationalized bank is hoping to avoid an
avalanche of lawsuits in the wake of a recent Supreme Court decision...’. El País in English reports.
…...
Brexit:
For once, the
British press – here
The Telegraph – are talking about
the Britons living abroad and the effect on them of a ‘Brexit’. ‘...If, as
seems increasingly likely, the UK votes to leave the EU, no one seems to have
considered the situation we, as British citizens, will find ourselves in,
practically overnight. If the UK denies EU workers the right to work in the UK,
why on earth would our adoptive countries maintain our rights to do precisely
the same thing?...’. The comments following the article make (as one would
expect, perhaps) for dismal reading.
Lenox’ essay on the Brexit at Spanish
Shilling here:
‘There will be a referendum in the UK this summer - apparently - and while it
will affect those two million Britons who live in Europe, only a very few of us
will be voting, or able to vote, to influence the outcome. This is of course
the consultation over whether Great Britain should leave the EU, the choices
being: staying, which is Good for Business, or leaving, which is Good for
Nothing...’.
…...
Various:
The Junta de
Andalucía, that great employer in Seville, admits that it has 1,118 employees
on its books which – er – no one knows what they do. The ABC has its fun here.
...And to give us
all a reminder of how the millions of funcionarios
keep us all on our toes in Spain, enjoy this
headline from
El País in English: ‘Supreme Court
finds Dutchman innocent of rape after spending 12 years in prison. Despite DNA
evidence presented in 2007 linking another suspect, judicial bureaucracy held
up his case’. The Dutchman concerned is naturally upset about this and is threatening
to sue. His grandchildren will no doubt be grateful one day...
French TV recently
showed a documentary about Juan Carlos called Moi, Juan Carlos, Roi d’Espagne. Spanish national TV has declined
broadcasting the show, since they are upset to find no mention in the entire
show of Mariano Rajoy – despite pressuring the French producer to include him.
It’s one thing
honouring heroes with a street name, but in Madrid, they’ve gone rather beyond
that, giving a park in the Latino district to a graffiti artist called Muelle.
On the bright side, one of his mates will probably deface it sooner or later...
Story here.
‘In a vast sea of
plastic greenhouses in south-eastern Spain, dubbed "Europe's vegetable
garden", discontent is growing among farmers who complain large
supermarket chains do not pay enough and farm workers who live in poverty. Since
the 1980s, one of the largest concentrations of greenhouses in the world has
developed on a coastal plain near the city of Almeria, spanning over 30,000
hectares in a "sea of plastic" seen from space...’. Story found
at The Local.
I don’t care about cookies. Now an add-on will remove those annoying cookie warnings
which feature on all European web-pages.
If you use Firefox – this
add-on gets
rid of them.
In Spain,
animal-mania is growing. A report
from La Opinion de Málaga says that,
unless there is a specific prohibition, dogs and cats will soon be able to
enter bars and restaurants with their owners. There is, after all, nothing more enjoyable than a dog fight at the
next table as you eat your lunch...
What to expect
when raising kids in Spain. An article from BLL here.
…...
See Spain
Spanish art fair ARCOmadrid will celebrate its 35th edition when
it opens next week. It’s the biggest art fair in Spain. Story
at Artsy.
A great site focused on Granada and Córdoba is Piccavey here.
‘My Favourite Veggie places in Spain’, with Ashley: ‘Little by little
I’ve gotten to know more of Spain, and along the way I’ve also eaten in all the
veggie/vegan/veg-friendly places I’ve found along the way. Slowly vegetarian
spots are becoming more popular in Spain and, best of all, they’re come with
Spanish twists like vegetarian tapas bars or vegan menú del día!...’From the
blog Cómo perderse en España.
…...
More on the Housing
Sector
by Andrew Brociner
In the last
issues, we started looking at the housing market to see the situation compared
to last year. We saw that, according to the INE statistics, prices are still
very low, but show some positive signs. Upon further examination, however, we
find that three regions in particular, namely, Madrid, Cataluña and the
Baleares are sustaining this rise and that the first two had suffered losses
greater than the national average.
If we look now at
house prices in terms of square metres, according to Tinsa, prices in general
decreased by 1,7% in 2015 compared to the year before. So prices still actually
fell in Spain last year.
Certainly, looking
at this graph, prices do not seem to be moving much at all. We have now gone
through eight years of falling prices. In the last months of 2015, prices per
square metre were at the same level as in the summer of 2003. It is still the
case that we are a long way away from the boom and need a long time to recover
the losses.
The reason that
this statistic is somewhat different from what we saw from INE and does not
show the same positive situation is that it contains more data: whereas INE has
data up to the 3rd quarter of last year, here monthly data is
provided right up to the end of 2015. So, based on this, we can say that the
situation has not really changed much and that we are still consolidating.
We can also see
that in terms of prices per square metre, there is not a great deal of
difference between the coast and the large cities, as prices seem to have
equalised, erasing the large differences made during the boom.
During the boom,
the coastal area and the large cities had greater price increases compared to
the rest of Spain, but now this difference has been wiped out.
On the other hand,
if we look at annual changes, we see that there are great disparities between
regions, with some which are starting to grow and others which are still in
decline.
As we have seen,
Madrid, Cataluña and the Baleares are the fastest growing regions. In the case
of Madrid and Cataluña, these regions have also fallen by most. So it is also
the case that people have been taking advantage of low prices.
It is quite
interesting to see – despite what one tends to hear now and then – the number
of regions which are still actually in decline. Only a few regions are
positive, yet for some not altogether disinterested reasons, one tends to hear
much more about them. Overall, prices for the nation still declined in 2015. It
does, on the other hand, remain true that prices seem to have stabilized as the
national declines are minimal on a yearly average.
We can say,
therefore, that with a few regions registering positive price rises, while
others continue to decline and that the result for the country as a whole is
still decreasing slightly, we are still very much in a period of consolidation.
…...
Letters
From Colin: ‘The
British Embassy in Paris has put out a plea urging expats to register to vote
in the EU referendum. As the polls narrow, Brits across the Channel are being
bribed with goodies if they sign up: “We are also offering a lucky winner and
their family the chance to enjoy afternoon tea at the British Ambassador’s
stunning 1720s built residence in Paris.” I’m not suggesting the embassy has
taken sides, but surely they’d be offering croissants and Châteauneuf-du-Pape
if they wanted us to stay in the EU’.
…...
Finally:
They say, if you
can tell jokes in Spanish, then you have arrived... Here are a
few from Don Quijote Spanish Courses. Well – this one’s not so bad:
‘Anuncio
por palabras: VNDO TCLADO CON UN PQUÑO DFCTO’
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