Spain Business Brief - Tuesday November 12 2008

Spain Business Brief - Tuesday November 12 2008
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By h.b. - Nov 18, 2008 - 1:03 PM

Archive Photo EFE

The number of 500 Euro notes in circulation goes up again.

Bad debts in Spain are on the up, with the latest numbers showing that families now owe 22.76 billion. The number triples that of a year ago.
Unpaid debts increased in October by 11.3% according to the data which comes from the National Association of Financing and Credit Establishments (ASNEF_EQUIFAX)
The data also shows that after seven months of falls the number of 500 € notes in circulation rose in October by 3.7%. The notes still make up 70% of the total cash in circulation in Spain, some 112 million €.

The number of foreigners registered in the Spanish Social Security System fell by 29,110 in October. It’s the third consecutive monthly fall and leaves the number of affiliated foreigners at 2,059,547.
The number is still 14,295 more than for October last year.

The Spanish Minister for the Economy, Pedro Solbes, has said that he has ruled out any further tax cuts, despite the fact that it now appears that Spain cannot avoid recession in the last quarter of the year. He told the Cadena Ser radio station today that until the figures are published that he preferred not to speak of recession, but that the Government was prepared as that was its job.

The Ministry for Employment has meanwhile carried out a U-turn and decided that the Telefónica can sack 500 workers who have reached the age of 48 or more. However in accepting the deal, the Ministry has said Telefónica can make no more reductions in employment over 2009, and they have to take on 500 new workers over the next two years. There is concern in the Ministry that the company wants to lose expensive long term workers and replace them with cheaper younger recruits.

The Spanish equivalent of the Monopolies Commission, the Comisión Nacional de Competencia, has questioned the state aid planned for the banks. President, Luis Berenguer, has criticised the help given to banks around the world in the face of the current financial crisis. He considers that what could happen is that you help those inefficient banks in detriment to those who have acted correctly. He meanwhile said the Commission is working on three new reports for the next quarter on solicitors, the distribution of petrol and on the management of copyright.

It has been revealed by El Mundo newspaper that the President of the Tremón real estate company which has just filed for bankruptcy, Hilario Rodríguez Elías, has a personal fortune invested in the stock market of some five million €.

Criteria, the investment arm of the La Caixa savings bank, is reported to be talking to several foreign groups over the possible sale of Port Aventura. The leisure park in Salou has an estimated value of 700 million €. Among those reported to be interested are Blackstone who currently own Madame Tussauds and Legoland. Sources at Criteria are quoted by El País as saying things are in the very early stages.

Carrefour has sacked its Spanish General Direrctor, José Luis Durán, who has been replaced by the Swedish businessman, Lars Olofsson, who comes from Nestlé.
Carrefour has not given a reason for the change which takes place on January 1.

And finally,
Something positive – Online advertising in Spain continues to grow – up nearly 40% this year compared to last according to numbers from the Interactive Advertising Bureau, the association which represents the sector in Spain, following a study carried out by PricewaterHouse Coopers.

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