Spain Business Brief - Thursday May 8 2008

Spain Business Brief - Thursday May 8 2008
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By h.b. - May 8, 2008 - 12:31 PM

The European Central Bank - Archive Photo EFE

No change expected from the European Central Bank on interest rates today.

The European Central Bank is set to leave interest rates unchanged at 4% today, after their meeting in Athens. Even though inflation fell across the Eurozone by 3 tenths of a point last month, it is still at 3.3% and considered high. The ECB has kept a strict policy against inflation, and most experts don’t expect any change between now and the summer.
It comes as the World Bank has warned today that the food crisis will continue until 2015. The bank wants countries to modify their policies to guarantee food for their peoples.

Spanish banks and savings banks associations have called on the Government to fund their current crisis by dipping into the Social Security emergency pensions’ funds. They think that the investment arm of the Social Security should invest not only in public debt, but also in mortgages and loans to banks. The request from the banks is published in El Mundo today.
Meanwhile FUNCAS the federation of Spanish Savings Banks have lowered their predictions for economic growth in the country for this year to 2.2%, down from 2.5%, and to 1.7% for 2009.

Construction companies which want to operate in Cataluña will now have to accredit their safety procedures. The regional Generalitat government gives the estimated 80,000 companies concerned a period of three months to supply the necessary documents. A new registry of companies will then be created for those who meet new legal requirements which have been in force in the region since last month.

The United States giant, Best Buy, is moving into Europe via The Phone House. The company which has a 20% share of the consumer electronic market in the United States has embarked on an expansion program and reached an agreement with Carphone Warehouse, owners of the Phone House to launch a joint venture in distribution in Europe. Best Buy are spending 1.39 billion € on the idea.

And finally,
A new internet search engine in Spain has been established to raise funds for the Catholic Church. Working in the same way as Google, and using the same technology, the profits though go to the church. You can try it out at www.buigle.com

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