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Spanish economy 29th March 2012

Spain’s general strike: a first for president Rajoy, a second defeat for the unions

On March 29 at midday, while those joining the nation-wide protest in Madrid celebrated that a major store like Cortefiel had begun to close its doors, electricity demand recorded an almost imperceptible 1.5pc shorter fall that the 17.5% drop caused by the last general strike seen in the country, back in September. Having it had no discernible impact then, it seems rather logical to assume that this one will not leave any…

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Spanish economy 28th March 2012

Spanish banks scramble to avoid salvaging Bankia

By Juan Pedro Marin Arrese, in Madrid | Big banks in Spain have entered the merger race purchasing former nationalised entities. This sudden shift from previous reluctance to get involved in rescue deals is seen by many observers as a move to fence off pressures to salvage Bankia. According to this view, there would be great concern in financial circles over an institution that seems too big both to fail and…

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Spanish economy 27th March 2012

Spanish companies ready for the external demand pickup

By Carlos Díaz Guell, in Madrid | Activity levels had lately improved, in the private sector although productivity has since 2007 recorded a slowdown, as evidenced by lower growth in Gross Value Added (GVA) of companies, whose figures began to fall in that same year (6.6% versus 8% in 2006) and contracted in 2008 (-2.7%) to drop sharply in 2009 (-7.7%). In 2010 companies’ GVA recorded a recovery in produccion activity…

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Spanish economy 26th March 2012

AXA Real Estate: growth in lettings in Spain fuels plans for property buys

LONDON | Asset manager company AXA Real Estate said Monday it signed 68 leases on behalf of its clients representing a total of 113,350 sqm of space across its Spanish portfolio in 2011. This marks an increase of around 90% compared to 2010, when 60,855 sqm of space was let across 42 leases. Of the 68 lettings, 23 representing 10,707 sqm, were new leases, while the remaining 45, accounting for 102,643 sq m of space, comprised lease…

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Spanish economy 26th March 2012

Madrid crackdown on misuse of public resources

By Juan Pedro Marín Arrese | Day after day, political scandals over public funds mishandling and utter corruption hold the front page. They severely undermine Spain’s reputation and call into question its ability to enforce a proper control of resources. Squandering taxpayers’ money in profligate and inefficient expenditure has become a firmly entrenched habit. Regional and local authorities openly challenge debt limits by piling up unpaid bills. Even early retirement benefits…

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Spanish economy 23rd March 2012

Friday’s Spanish graph: hopeful Easter

The slowdown in the European cycle begins to appear on the figures about tourism in Spain. The drop in flow of foreign tourists from Germany and the UK, with a share of above 35% of the total, weighs down in part the evolution of total inflow of tourists during the first two months of the year. Yet, until now, we are only witnessing a containment in the growth rate after a exceptionally good 2011, considering it is a period of crisis, analysts…

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Spanish economy 23rd March 2012

Spanish savings banks’ puzzle must be completed

By Carlos Díaz Guell, in Madrid | The second stage of Spain’s financial reform is going through a foggy tunnel in which stable entities have been left in a state of perplexity and confusion. The entities that aspire to be absorbed are too weak even to attract deals, the governor of the Bank of Spain is about to end his mandate and does not have the government’s trust, and the road…

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Spanish economy 20th March 2012

Balearic Islands’ former president found guilty in anti-corruption trial

Jaume Matas, who was regional president of Balearic Islands, became Tuesday the first former autonomic premier and the second former national minister to face a prison sentence. The Provincial Court of Majorca condemned him to 6 years in prison for an offence of management fraud, a crime of falsifying an official document, a crime of commercial document forgery, a crime of malfeasance in competition with an offence of embezzlement and…

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Spanish economy 20th March 2012

Madrid plans to streamline public sector seem merely cosmetic

By Juan Pedro Marín Arrese, in Madrid | Spain’s government has pledged to close down 80 publicly owned enterprises, an impressive figure at face value. But most of the adjustment is grounded on the simple recipe of merging subsidiaries into mother companies. Thus the only tangible savings amount to allowances paid to suppressed Boards of Directors. A negligible €1 million cut off that will add very little in terms of budgetary…

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Spanish economy 19th March 2012

Spain in dire need to square the circle of the deficit target

By Juan Pedro Marín Arrese, in Madrid | The Spanish government publicly claims success in limiting damage after having boldly taken the step to revise upwards the deficit target. But privately, it recognises that being forced by partners in the Eurogroup to trim it down came as a nasty surprise. Overconfidence had led Madrid to believe that the understanding attitude shown over Spanish budgetary problems would be enough to shore up…