MADRID | By Sean Duffy | Spain is on the path to recovery, and that recovery is to be directly felt by citizens in the form of tax cuts fuelled by the country’s improving economic situation. That was the message delivered by Spanish Treasury Secretary, Miguel Ferre Navarrete, in a speech delivered at Spain Investors Day.
MADRID | The Corner | Economic confidence in Spain reached its highest level in December since June 2007 (105.6 points from 104.2 the previous month), according to the European Commission. The figures show an improvement in trust from consumers, the services sector and retailers.
MADRID | By Francisco López | Spaniards consume more and save less. Household saving rate continues to fall and in the third quarter of 2014 stood at 9.4% of disposable income, the lowest since the end of 2008.
BARCELONA | By Joan Tapia | We don’t know what 2016 holds for us, but we do know that 2015 will be economically positive. From an economic point of view, 2015 may even be a mini-boom. Apart from the GDP, which has been growing for five quarters, the tax collection is doing relatively well. The central government will stop containing the public spending, even for the Spanish regions, because 2015 is an electoral year. The fiscal reform will be a sort of increase in salary that will boost consumption.
MADRID | The Corner | It was expected that the fall in the oil prices would have an impact on the Spanish CPI, and that is what has happened. The CPI dropped by six tenths in December with respect to the previous month, while it reduced its interannual rate by seven tenths to -1.1%. This fall is the result almost exclusively of the decline of the oil price, whose fluctuations represent more than 50% of the variability of the Spanish inflation.
MADRID | By Fernando G. Urbaneja | Spanish PM Mariano Rajoy faces 2015 with electoral commitments and weak prospects. The goal of the Popular Party (PP) is to reach enough votes so as to maintain a large part of its power in the Spanish regions and city councils where it has the majority. The final goal is achieving the re-election in the central government by means of achieving the recovery.
BARCELONA | By Joan Tapia | Last month, I warned about the serious political problem in Spain, which was (and is) focused on the Catalonian crisis and the rise of the new political party Podemos. Both could disrupt the political system and kill off imperfect bipartisanship. Meanwhile, the economy was starting to show some signs of improvement. In November, the perception that the economy is improving while politics are worsening has increased and multiplied. It is difficult to argue with the fact that the economy is going better than last year.
MADRID | The Corner | The Spanish Council of Ministers has approved the definitive figure for the 2013 tariff deficit. The figure, €3.54 billion, will be recoverable via the electricity tariff over a period of 15 years. It will be remunerated at 2.195% of interest rate. The measure will have an impact on the main utilities that operate in Spain: EDP (Ba1 p, BB+ e, BBB- e), Enel (Baa2 n, BBB e, BBB+ e), Gas Natural Fenosa (Baa2 e, BBB e, BBB+ e) and Iberdrola (Baa1 n, BBB e, BBB+ e).
MADRID | The Corner | Spain’s final CPI in November was exactly the same as preliminary estimates: -0.4% yoy and -0.1% per month. The inter-annual rate has registered its fifth month in deflation, whereas the month-on-month rate was recorded as negative for the first time in 4 months. Throughout 2014, there were only three months with negative rates. Both the acceleration of the fall in oil prices and the stability of the dollar/euro explain these figures.
MADRID | The Corner | Almost 8,000 companies were created in Spain in October, according to official figures, around 3% more y-o-y. The rate of businesses destruction went down by -12.2%, showing the economy’s slight improvement. However, unemployment still sits painfully at 23.7% and entrepreneurs still complain about red tape and other restrictions.