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Complex situation of the Spanish economy

The crisis that at present crosses Spain would force the Government to relieve with 40.000 millions to the financial system to be able to give liquidity and to meet the demand of housings of the citizens. 10.000 million euros that the Executive has proved are insufficient, according to the General Secretary of the G-14. Pedro Pérez. If the building rhythm continues this way - in the present year only 200.000 housings will be constructed only, a third part of those who were done in 2007. These numbers are very low and it might not face to the demand of housing, which is stated in 350.000.

On the other hand, the vice-president of economy Pedro Solbes supports that with the support of the businessmen and the workpeople and the impulse of the public administrations it will be possible to overcome quickly this thorny stage. For it he foresees that there could be a recovery of this situation from the second semester of 2009.

The complex economic situation of our country forces to a reduction of taxes and social quotations. With an injection of good liquidity the financial system of Spain might already fit also the housings supply and demand to reduce the brakes that prevent the employment creation

Our economy has happened for difficult periods and of minor growth and they have excelled themselves satisfactorily to improve the quality of life of the citizens. The mayor of Madrid, Alberto Ruiz Gallardón thinks that the most intelligent way of overcoming the current cooling of the economy consists of the investment in projects of extra cost and to resign from the immediate benefit.

Route: The Country

Spain stops being an attractive country for the investments

Our country already does not attract foreign investments in spite of counting a competitive position in Europe. According to the office of statistics Eurostat, last 2007 the investment of extracommunity countries in the EU reached 319.200 million euros, but Spain remained only with 3.000 million euros. Belgium, France, Ireland, Luxembourg, Hungary, Holland and Austria are the destinations that at present prefer the multinationals of out of the European Union.

These numbers do not correspond to the concept of Spain like eighth bigger economy of the world, behind Estonia or South Korea. The World Bank grants the position to him 38 as more interesting place to realize business.

This problems is easily identifiable if we bear in mind the investments in the European Union of strong potency that do not belong to this one. The United States, for example, invested in this territory 144.500 million euros, but Spain remained only with 1.900 millions.

The Spanish economy has experienced in the last ten years a considerable dynamism inside the European territory thanks to the expansion of the consumption and the creation of employment. Aspects as the gastronomy, the free time and the culture are most valued by the investing companies. They value Spain with 3,4 on 5.

Nevertheless, there loses positions in this financial ambience for the bureaucracy in the activity businesswoman, the rigidity of the labor market, the tax system and the educational system.

Of all this we can deduce that Spain is clearly a showy geographical and tourist destination that seduces many companies, but that needs economic reforms to be able to compete on equal terms with other countries. After Of there are no changes, it will remain also without being the fourth economy of the area of the euro.

Route: Expansion

Dependency or not of the BCE?

José Manuel González Páramo, member of the managing committee of the European Central Bank has made sure that the Spanish banks are not dependent on the liquidity that this organism provides. Also, it has defended in the British press, specifically in Financial Times, To the solvency of these financial institutions. “I do not think about any sense that the bank system is turning addictive [†¦]. The banks have changed his behavior from the last August, but due to quite obvious reasons for each of them.

To The BCE it has showed his support and support to all by means of liquidity injections since the crisis of the financial markets began. But the dependency on the European banking on this one has unleashed diverse controversies as regards the improvement and advantage of the above mentioned entities thanks to this bonus. Although on a global scale a very significant increase is not perceived in the quantities that the BCE provides.

The reality shows us that the banks yes - use the financing of the issuing institute of the money to carry out his daily loans activities, and that the confidence in this source of liquidity is not sustainable.

González Páramo thinks that this extra support to the entities can continue more time and that it is not necessary to finish the above mentioned interventions in the markets. To Ha emphasized that the refinancing auctions do not give superiority to the banks of our country. In the same way he has emphasized that the BCE protects to a big number of banks and gives many guarantees, that the frame works well and that there are no indications to worry.

Route: The Country

Iberdrola extends his presence in the world

While Iberdrola increases his markets and interferes in the Middle East and ífrica, Facua demands from him that he should return the money for the modifications of the night tariff.

The Spanish company that distributes and commercializes electricity and natural gas signed yesterday an agreement to initiate investments in Middle East, the north of ífrica, Europe and North America. This company already has presence in more than 28 countries and tries to keep on extending his interests in numerous parts of the world.

For his part, the Spanish Government is going to carry out a project to realize progress in the air transport between our country and the Persian Gulf. Industry also wants to contribute his sand granite to begin good relations, therefore it reckons for agreements de development and cooperation on the subject of exterior commerce.

Nevertheless, they not all are favorable news. The Consumers' Federation in Action, commonly named Facua, demands from Iberdrola and from Union Fenosa that should reimburse the money received from the consumers por the changes in the regulation of the night tariff.

Facua affirms that law approved by the Spanish Government, the Royal decree 222/2008 of February 15, excuse to the users of the ancient system to pay the changes in the potency or performances in his teams.
The cessation of the night electrical tariff has created a big sense of expectancy between the citizens. From next July 1 the receipts de light will get dearer for this motive.

Route: The Country

Without brake and in rise

The Euribor finally is going to reach 5 %: his maximum level in eight years. This way, the mortgage will increase about 720 euros per year. This record leaves in a delicate situation the Spanish families that confront two or more monthly credits. From November, 2000 this indiciador had not come at a level this way-.

One of the sources of statistical information in our country, the Spanish Mortgage Association (AHE), To esteem that “this increase is bad news that will raise the bank slowness of the mortgaged ones”.

To: What will happen in the next months? To: What way is the Euribor going to continue? So if the above mentioned index does not stop increasing the European Central Bank it will have to lower the interest rates to be able to restore the liquidity of the financial sector.

We cannot deduce to true science the course that the Euribor is going to take. Only we can only wait a correction for the casualty, that is to say, that the European issuing institute should cut away the official price of the money.

Although, there are opinions for all the tastes. There are great the experts who support that it is not going to go down the current levels, which environment will place to this number, being able to come even to 5,2 %.

This unstoppable ascent nothing has to do with last May, where one placed 0,627 points for below. Juan Carlos Sandoval, commercial development manager of the Unit of Real estate Credits (UCI), supports that the Euribor will mark record in August, and the people to whom it has him to check the mortgage then are going to notice it very much, but since then it will go down and it might return to 4 % in 2009.

Route: The World

The indebtedness of the Spanish to the limit

The Spanish are the Europeans to those who more worry the payment of his mortgages at the beginning of month. According to a report of the Agency Negotiator of Bank Products, three of every four destines more than 40 % of his salary to settle his monthly quota of loans and financings, such as there are the credit cards and the awesome mortgage.

78 % of the Spanish hearths confronts three or more credits and most of them prefer to pay less monthly and increase the term of the final liquidation of the debt.

To face the mortgage indebtedness does slope to arrives, and even more now when the Eurí-bor comes to 5 %, his highest level from 2000.

We have left few consolation words before the crisis of the index most used by the banks to give money to his clients. í‰ste it began to quote at the beginning of 1999 and only it has overcome the number of 4 % for 22 months. 014 % has supported between a maximum of 5†™ 248 % and a minimum of 2†™. The current statistics put in alert the risk that these families run before higher and higher indebtedness levels.

These facts affect straight at the time of making the payment effective with the respective banks. There are unpunctuality symptoms. And this phenomenon is generalized. The delays every time are more important.

Finally, we assist a quite alarming panorama in which the Spanish demand mortgage credits to be able to choose to a housing, although the payment of his monthly quotas is very difficult and they commit aberrations in him. A more and more constant lengthening of the period joins it to be able to return the loan.

Route: The Avant-garde

The growth of the economy in Spain diminishes

According to offered information this week for the National Institute of Statistics (INE), the big deceleration in the consumption and the brake of the investment they have unleashed a descent of eight tenths in the growth of the Spanish economy during the first trimester.

Up to 2†™ 7 % has lowered this number, the lowest for five years. This process is not new. It began in the second trimester of last 2007, although it has worsened between January and March of the present year. The Executive trusts that do not register negative information in the next months. David Vegara, secretary of the State of Economy, supports his forecast of a growth of 2,3 % in 2008. All this will be possible if other quarterly growths are superior to the current information.

Nevertheless, there are still more numbers. The slowness has increased 60 % in one year and already reaches his highest level from 2001. The credits of doubtful cashing are over 1 % of the loans of the boxes. In turn, the mortgage activity is paralyzed.

The economic deceleration is a consequence of a minor home demand, where they take control of the consumption and the investment. The unemployment is an unavoidable symptom of this phenomenon. But today day new and worse news joins. The industrial production also has experienced from the last December his second consecutive fall. In words of the economist of the Bank Urquijo Antonio Zamora, “there is getting together an exterior situation complicated with a few adverse internal conditions by the construction, the employment and an IPC over other countries”.

These facts come to confirm a stagnation of the economy, for what it will be necessary to attack structural reforms that they could face to him. The flexibility of the workpeople or to give guarantees to the financial resources of the small and medium companies there can be some of the solutions as the Chambers of commerce.
Route EFE

The consequences of the crisis of the brick

The crisis of the brick in our country constitutes already a serious problem according to the experts. At this point of the year they have closed 40.000 real estate offices, what is translated in 120. 000 jobs. The unemployed men principally are part of the real estate sector, although also numerous transporters and carpenters have met without employment.

The increase of the prices, the increase of the Eurí-bor and the unemployment have raised to 100.000 the number of families with economic difficulties to come in order month and to face to the payment of his mortgages.

Spain and Ireland are the countries most affected by the real estate bubble. Although in the first case one speaks about the biggest interannual descent of the brick of the whole European Union.

The Eurostat, the European statistics office, he has confirmed a fall superior to 10 % in the Spanish sector of the construction. This collapse also has startled Portugal (6,5 %). In the opposite side there are located Romania (32,5 %), Sweden (23,2 %) and Slovenia (22,2 %), since there are the countries that have had a major increase of the real estate production.

The Spanish hearths most disturbed by the effects of the crisis of the brick are all those who signed a mortgage in the last cincos years. With this panorama it is no wonder that there have taken place cases in which real estate has sold for the value of his mortgage.

The families that cannot confront the payment of the credits move to a rent housing until they find hardly a buyer. Although this case is almost impossible, because the market is stagnant. It joins this problem the fact that the above mentioned housing is already not quoted at the same price as at the moment of the buy, therefore the desperation grows.

Route: EFE

The Eurí-bor approaches his highest level

The Eurí-bor closed in April in 4,820 % and it was his highest level from hací-a eight years. Now, in May, this indicator has ranged between 4,941 % and 4,960 %, coming closer his historical maximum, which is located in 5,248 %.

This level surprises facing the future, therefore the second vice-president of the Government and the minister of Economy and Treasury Department, Pedro Solbes, has thought that in these moments it is easier that it lowers the money of the European Central Bank. Although so that a descent of the interest rates takes place at the end of 2008 the inflation valuations must diminish first.

The inflation valuation in our country might be located in 3 % and in Europe in 2 % and from here on - the debate concerning a possible interest rates descent would be more feasible. At present the inflation in Spain finds 0.9 points over the European.

If really the increase of the Eurí-bor comes up to 4.9 % in the present month, the mortgages would get dearer 600 euros a year, or what is the same, 50 monthly euros.

This mortgage type goes in rise and worries every time in major measurement the consumers, since the number of families mortgaged in our country is in 76 %. If the Eurí-bor keeps on increasing positions the difficulties of the Spanish to be able to confront these payments would multiply.

The measurement at that Solbes aims is foreseen like one of the best remedies. Nevertheless, the president of the BCE, Jean-Claude Trichet, insists on controlling the inflation and does not include in his plans a reduction of the same one, still knowing that he needs promptly solutions opposite to the liquidity crisis.
Route: Europe Press

The slowness generates employment

The collection companies of bad debts are at present one of few resources that numerous entities and individuals have left to claim hanging invoices and non-payments.

In Majorca this fact has turned out to be increased by the closing of companies. The economic crisis has taken many of them to an untenable situation, which only exit has been the cessation of his activities.

The invoices track without paying has not stopped growing in the last years, therefore the debt claim has turned into a fundamental business in the Balearic island. In this respect The Conductor of the Tail coat is one of the most spectacular measurements that we can be. It is a question of a company that devotes itself to the bad debts cashing in Europe. More than fifteen years of experience endorse him for the whole Spain, France and Portugal.

The hiring of his services has been notable from 2007. But beyond slovenly outfit that the master of the tail coat takes, this company tries to negotiate first of all. Also it realizes investigation tasks to state the solvency of the debtor.

With the records of bad debts and the relation of not liquidated debts many persons have serious predicaments to request a credit or to buy an article without cash. And for those who do not know it, the banks yes - give them importance to these lists.

There are great the companies that have been born in order to there managed the cashing of hanging money, such as The Fox Conductor, The Auctioneer of the Bad debt, The Conductor Gaitero†¦ The percentage of success of this type of services also is very high, going so far as to rub 80 %. The fees that these companies receive are proportional to the amount of the debt that recovers. This way - that while on the one hand this is convenient for all the companies of debt cashing, the affected citizens suffer real troubles to be able to go forward.
Route ADN

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