Spain Business Brief - Thursday September 4 2008

Spain Business Brief - Thursday September 4 2008
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By h.b. - Sep 4, 2008 - 12:58 PM

The Minister for Employment and Immigration - Celestino Cormacho - Photo EFE

Employment Minister upsets immigrant groups.

The decision of the Spanish Government to stop the issue of contracts for work to foreign workers in their countries of origin from next year has been criticised by both agricultural and immigrant associations. There is doubt in Spain that those on the Spanish dole would be prepared to collect olives in the countryside instead. Similarly unpopular jobs would be strawberry collection in Huelva or working under plastic in Almería. This year for example some 25,000 temporary workers from Romania, Bulgaria, the Ukraine, Morocco and Senegal have been working picking strawberries in Huelva. Debate is served.

Meanwhile the Minister for Employment and Immigration, Celestino Corbacho, has said that it will be impossible to recover all the jobs which are currently being lost. He said it was important that social support for the unemployed is continued, so that they can be relocated in the future in other economic sectors. He made the comments during an interview on Intereconomia TV, and also admitted that the INEM employment service would be moving into deficit. Corbacho has also supported his fellow Minister for the Economy, Pedro Solbes, in calling for all local councils and public administrations to restrict their costs.

The President of Congress, José Bono, has proposed that deputies undertake to freeze their wages. He says a formal proposition will be presented to the parliamentary groups in a joint meeting set for September 15. The Socialist party has already approved an austerity plan for its top managers.

Cheaper oil prices on the international market are still not being noted on the forecourts of Spanish petrol stations where both petrol and diesel have in fact risen in price this week. Filling your tank now costs between 7 and 13 € more than a year ago.
The numbers come from the European Union

Telefónica has announced the investment of 800 million to extend their shareholding in the China Netcom company to 12.9%, an increase of 5.3% for their current shareholding.
The increase in shares will come in two stages, the second of which is dependent on the fusion process between China Netcom and China Unicom.

New York has approved the deal for the Energy East power company to be purchased by Iberdrola. The Spanish company is to spend 200 million dollars in wind generating farms, must get rid of the fossil fuel plants, and will cut its tarrif by a further 275 million as part of the deal. New York reserves the right to veto any later selling off of company assets.

A report from the Watson Wyatt company has said that inflation has affected Spain more than neighbouring companies. The report says that purchasing power has been lost here for the fifth consecutive year, even with salaries increasing by 4.4% over the year.

And finally,
The Euro is trading at its lowest level since February against the dollar as the ECB decided to leave interest rates at 4.25%. Analysts think however that cuts in rates could be on the way in the future.

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