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Spanish economy

spain financing needs

Spanish economy 25th May 2020

Spain’s Financing Needs Rise To €130 Bn In 2020; Well Off The €32.5 Bn Initially Planned For This Year

Intermoney | What is clear is that the finances of countries like Spain are only sustainable thanks to the ECB’s very important support. And also thanks to the EU’s action which is much better than in the previous crisis. If the German and French Recovery Plan, based on subsidies, is successful, Spain’s need for financing will be lower; in other words, Community transfers would help keep net financing well below the 130 billion euros target.

Spanish companies' cost of financing at minimum lows

Spanish economy 21st May 2020

Spain Has Already Approved The Use Of €84.5 Bn Of The Total €100 Bn Guarantees For Corporate Loans

Santander Credit Research | The Spanish government approved a fourth tranche (€20 billion) of the €100 billion worth of guarantees for corporate loans which was announced on 24th March. This is part of the economic aid package to mitigate the negative impact of the containment measures imposed due to the Covid-19 outbreak. The new tranche approved will be aimed entirely at guaranteeing loans to small and medium sized enterprises (SMEs) and the self-employed.

The challenge for Spanish banks in 2019: improve profit margins, still at historic lows

Spanish economy 20th May 2020

Public Debt Will Be A Headache For The Spanish Economy: It Is Already Close To 100%

According to data released yesterday by the Bank of Spain, overall government debt reached 1.224, 243 trillion euros in March. It increased by 22.473 billion euros (+1.9%) from February due to the Covid-19 crisis. So public debt is now at an all-time high and equivalent to 98.3% of 2019 GDP. All organisations highlight in their forecasts that public debt will rise above 100% and set new historical records.

merkel macron together

Spanish economy 19th May 2020

The Return Of The Franco-German Axis Marks The Recovery Plan For EU Member States

The Franco-German axis is back in operation thanks to the coronavirus crisis. Yesterday, the French president and the German chancellor agreed to propose the creation of a €500 Bn reconstruction fund to the European Union (EU), far cry from the quite regularly speculated sum of around €1 Bn or €1.5 Bn. The proposal is very much in line with the recovery plan which the European executive is working on currently and is expected to be presented on 27 May.

vicepresidente unidas podemos

Spanish economy 14th May 2020

Unidas Podemos Proposes A Tax On Large Fortunes In Spain

Bankinter | Unidas Podemos, the party which forms the government coalition in Spain together with the socialists, has proposed the introduction of a progressive tax to replace the Wealth Tax. In the tax calculations, a person’s primary residence would be exempt up to an amount of 400.000 euros. For the time being, this is only a proposal that will be taken to the Commission for Economic and Social Reconstruction in Congress for debate. 

Caixabank, Telefónica, El Corte Inglés or Iberdrola, the Spanish firms best prepared to confront 2019

Spanish economy 13th May 2020

Over 40% of Spanish Firms Plan To Cut Their Workforce Due To Covid-19

More than 40% of Spanish companies are planning or considering cutting their workforce due to the impact of Covid-19. At the same time, 25% of firms have frozen salaries and 16% are reducing them, according to a survey of nearly 1,000 European organisations, carried out by consultancy group Willis Towers Watson. More than one hundred Spanish companies are included in the survey.

Spanish Banks precious

Spanish economy 8th May 2020

The Bank Of Spain Urges The Government To Adopt A Strong Fiscal Response To Avoid Extending Covid-19’s Impact

Following the publication of the Financial Stability report, Bank of Spain governor Pablo Hernández de Cos highlights the significant increase in public debt, which will have to be faced once the crisis is over. The governor points out that it will be necessary to implement a medium-term fiscal consolidation programme and implement the necessary structural reforms.

Spain's tourism

Spanish economy 7th May 2020

Foreign Tourist Arrivals In Spain Plunge 64.3% In March; Only Domestic Tourism Can Save The Season

Spain received two million international tourists in March, 64.3% less than year earlier, after its borders were closed from the mid-month to curb the Covid-19 pandemic, according to the Statistics on Tourist Movements at Borders (Frontur). In 2019, Spain clocked up for the seventh consecutive year an all-time record in international tourist arrivals, with 83.7 million visitors. But with borders closed sine die, it seems that only domestic tourism can save the 2020 season.

unemployment spain

Spanish economy 5th May 2020

Spain Loses Almost 950,000 Jobs Since The Beginning Of The Coronavirus Confinement

The Social Security has lost 947,896 affiliates since the beginning of the COVID-19 crisis and up to end-April, leaving the total number of contributors at 18.39 million. Meanwhile unemployment grew in these last two months by more than 585,000 people, exceeding 3.8 million unemployed. The Ministry of Labour has not included the almost 3.5 million Spaniards protected by a situation of total or partial suspension from work via temporary layoffs.

Spain real estate

Spanish economy 4th May 2020

Housing Prices in Spain Could Fall 6% In 2020

COVID-19 will result in a slowdown in housing transactions of -35% – up to 326.000 transactions in 2020, returning to minimal levels (2012 to 2014). Home buying decisions will be postponed by 6-12 months, and some of the demand will disappear for longer, producing a temporary imbalance between supply and demand.