In Spain

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Much ado about nothing with Spanish evicted families

By Julia Pastor, in Madrid | Perhaps the British households in economic troubles because of the crisis and the unemployment impact are mildly familiar with the words eviction or lieu of payment, but more than 150.000 Spanish families have already been evicted and another 330.000 are in the same process. They are destitute families, with all their members unemployed and no additional income, who cannot face up paying their mortgage. On…


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Untimely circumstances for undertaking reform plans

By Juan Pedro Marín Arrese, in Madrid | You don’t usually pick up the most suitable moment to undertake a widespread reshuffle of ill-functioning markets. Stiff political and social resistance leads to abandon any plan or hope to do it. As shelving problems don’t settle them, reforms are only accepted under the pressing need to redress a desperate situation. As a result, measures tend to inflict more damage and reap fewer…


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The crisis brings Spain its first trade surplus with the euro zone

MADRID | Spain reached for the first time a surplus in its trade balance with the euro zone in 2011. Exports to the European Economic and Monetary Union grew 9.6%, almost three points more than imports. The weakness of the domestic demand explains the attainment of such a historic achievement, explained the business daily Cinco Días. Four long years of economic crisis have some positive aspects. According to data released…


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Spain’s plan to cancel €35bn debt from regional and local authorities

By Julia Pastor, in Madrid | Spain’s government is about to attack another of the ills afflicting the country’s economy: the debt that regional governments and municipalities owe to their service providers. The minister of Finance Cristóbal Montoro announced Tuesday that the cabinet will finalise a macro financial operation to cancel this debt, which has reached the €35bn level and has been suffocating Spanish SMEs’ liquidity for years (SMEs’ weight…


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Light in the Spanish economy

By Enrique Quemada Clariana, in Madrid | As we are M&A advisors, last week a German investment fund visited us in Madrid with the intention of giving us a mandate to search for Spanish industrial companies on sale.  They think there are great opportunities in Spain. Their belief is that there will be an ‘inverse delocalization’, which means that, given the crisis that has taken place in the last five years and…


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When president Rajoy makes decisions

By Joan Tàpia | At the end of 2011 and after taking office, Mariano Rajoy’s government made its first decision: a €15 billion budget adjustment which implied that increasing taxes, especially personal income taxes, was essential –something he said he would never do. During the election campaign, the PP also assured that it would not lower the cost of dismissal. Now, the law-decree of February 11 does precisely this and takes…


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Is the Spanish government plundering power companies?

By Juan Pedro Marín Arrese, in Madrid | Year after year, electricity prices have been reined back below recognised costs, building up a deficit running now at €24 billion. This huge hole turned into a right to be paid back in future has suddenly been put in jeopardy. No wonder power companies are talking about daylight robbery. Are they justified in venting their anger on government? One can understand the…


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Spain seeks EU TEN-T funds to plug gap in finance for public works

MADRID | Spain’s ministry of Public Works will request that the route across the Pyrenees be included in the trans-European transport network or TEN-T by the European Commission, reports the daily newspaper Negocio. The head of the department, Ana Pastor, has presented to the media the proposal that will be made in Brussels to help shape this network. Pastor went as far as describe that route as a “key infrastructure for…


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Spain’s reforms face lacklustre delivery

By Juan Pedro Marín Arrese, in Madrid | For all the efforts to revamp a sluggish economy by bold reforms, Spain is failing to impress investors. They have the feeling that cleaning up the massive stock of repossessed property and bad loans in banking balance sheets will amount to a much higher bill than the one announced by government. Double the €50 billion figure at the very best. No wonder…


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Spain’s Tax Agency to ‘urgently’ check on ten former tax havens

MADRID | As published on Monday by Negocio, Spanish tax inspectors believe the Tax Agency should take some urgent actions to close leaks of fiscal revenue. Bearing in mind the budgetary restrictions that the State is about to suffer, and that any legal change against fiscal fraud would require too long a process, one of their intended measures would be giving a new twist to the message that vice-president Soraya Sáenz de Santamaría…