William Chislett | EU and euro zone membership have been hugely beneficial. More than 30 years after joining the EU, Spain was still a net recipient of EU funds. Between 1986 and 2016, the country received €95 billion more than what it contributed (excluding co-funding of EU projects).
The Spanish economy is entering a more mature phase of the cycle and, therefore, its growth is gradually slowing down to levels that are more sustainable in the long term. In this context, CaixaBank Research wonders what trends can be expected in the main driver of the economy: private consumption. Following are their conclusions.
Solar energy will mobilise investments of 60 to 70 billion euros to achieving the objective of 35% of renewable energy by the end of 2030. This coincides with the recent approval of the Law Proposal on Energy Self-Consumption, which bids definitive farewell to the tax on solar power.
“Never again Spaniards will have to pay the mortgage stamp duty”. With these words the Spanish president Pedro Sánchez announced a decree law and gave a new twist to the story of who should be responsible for this tax, just a few hours after the Supreme Court decided that it will be the customer’s duty. The way in which the highest court has managed the decision making process puts into question its credibility.
Miguel Navascués | Still maintaining pensions reforms, given fairly benign assumptions on productivity, growth, employment and immigration, would have to result in the apparition of a significant systemic debt, but the no-reform is therefore today the least bad solution. A rigorous study by the Foundation FEDEA focuses on precisely this point.
William Chislett | By the time General Franco died in 1975 Spain had undergone profound economic and social change, which laid the foundations for an even greater transformation over the next 40 years, but it was a long haul. The new constitution, drawn up by all the main political parties and approved in a referendum on 6 December 1978 by 88% of voters on a turnout of 67%, sealed the transition to democracy.
On next December 6, the Spanish Constitution and therefore Spain’s democracy turns 40 years old after another 40 years of dictatorship. Until that day, The Corner is going to publish a series of articles written by William Chislett, associate analyst at the Elcano Royal Institute about, precisely, how much and and how deep the country has changed in these last 4 decades. Today’s story is just the beginning.
Investment in property in Spain by institutional investors rose to 13.385 billion euros at the end of September, according to CB Richard Ellis. That figure exceeds the 12.75 billion euros in the whole of 2017. The total volume of investment for the whole year would exceed 16 billion euros, which would mean the highest level for ten years.
The deficit of Spain´s public administrations was 3.1% of GDP last year, the highest in the European Union, above the 3% registered by Portugal, and followed by Rumania (-2.9%), France (-2.7%) and Italy (-2.4%). This is according to the data published by the European Statistics Office, Eurostat, which has downgraded by two points Spain´s public debt to 98.1% of GDP.
Spain’s banking sector lost € 5.560 Bn in market capitalisation yesterday after the country’s Supreme Court decided they woud have to pay mortgages taxes and not the final client. Just 24 hours after, the Court announced they will review the decision. Morgan Stanley calculates that the effect of ruling could reach 12 billion euros.