Spain Business Brief - Friday May 15 2009

Spain Business Brief - Friday May 15 2009
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By h.b. - May 15, 2009 - 12:39 PM
Europe in the worst recession since the Second World War

The European Central Bank - EFE

Following on from yesterday’s revelation of a 1.9% contraction in the Spanish G.D.P. for the first quarter of the year, today we hear that Germany has seen a 3.8% fall over the same period, its largest reduction since the Second World War.
France has also entered into recession with a fall in the first quarter of this year of 1.2%.
It means that for the Eurozone is in its worst recession for 60 years with a contraction of the economy of 2.5%, but despite that the International Monetary Fund, IMF, has said that green shoots can be seen, in line with recent comments from the Spanish Minister for the Economy, Elena Salgado.

Meanwhile her new ‘number two’, the Secretary of State for the Economy, José Manuel Campa, is reported to have written an article in March where he proposed wage reductions and more flexibility from those on contract in Spain.

The Spanish Government has announced it is to freeze all airport taxes in 2010, as a way of stimulating tourism. The Ministry of Development has also said it will be increasing the discount for residents of the Canary Islands, Balearics and Melilla, on flights to the mainland from the current 15% to 30%

There has been some disturbances in the Gijón naval shipyard with fighting between those who are facing early retirement and anti-riot police. It’s happened ten days after the start of a sit-in by the workers who are looking for labour and pension guarantees after the factory closes, set for the end of this month.

Union CCOO says that the number of applications for bankruptcy protection has increased by 266% in the first quarter of the year, year on year. They say that of the 1,558 applications made over the three months, 1,358 were from companies and 200 from individuals.

And finally,
A 12 year old child from Cáceres is the second this year to obtain income tax information from Hacienda. She has been told she is entitled to a tax rebate of 12 cents, and says she will spend it on a Chupa-Chups lollypop.

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