Spain Business Brief - Monday December 29 2008

Spain Business Brief - Monday December 29 2008
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By h.b. - Dec 29, 2008 - 2:10 PM

Archive Photo EFE

Cheaper mortgages as the Euribor continues to fall.

Mortgages in Spain will see their largest fall in seven years, as the Euribor rate falls to 3.4%, its greatest fall since 2001. The change means the average mortgage will be 115 € cheaper a month. Experts say that the tendency for next year will continue to be downwards.

The Prime Minister, José Luis Rodríguez Zapatero, is preparing another meeting with the Spanish banks for January, with the intention that the citizens of the country benefit from the state help being given to the financial institutions. Zapatero wants to see the funds have an effect on the real economy.

The Minimum Wage in Spain will increase by 4% in 2009 to take it to 624 € a month, compared to the 600 € now. Minimum pensions are up 6% next year.

RENFE train unions have called off the strike which was planned for today after a meeting with management.
Both sides have agreed to extend the current wage deal for another year and apply a wage increase equal to that awarded to civil servants next year.

The latest victim of the Madoff broker fraud is the Spanish film director, Pedro Almodóvar and his production company El Deseo. They invested some 5% of their assets in Lux Invest, one of the affected funds. Stephen Spielberg also lost in the fraud.

Savings Bank La Caixa has announced that it is no longer in talks to sell its shares in Repsol YPF. It was thought the bank would be selling the 14% shares it has to the Russian company Lukoil, but they announced the change of mind in a statement to the National Council for Market Values.

General Motors workers are demonstrating in Zaragoza this afternoon as they have failed to reach an agreement on redundancies with management. The motor manufacturer wants to temporarily lay off 7,500 workers for a period of 17 days.

And finally,
It seems the economic crisis is affecting wine sales in Spain, with sales of crianzas and reservas in bars and restaurants down 20%. However the sales of Don Simón and other cheaper table wines, often sold in cartons, are soaring up 29%.

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