Spain Business Brief - Friday July 3 2009

Spain Business Brief - Friday July 3 2009
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By h.b. - Jul 3, 2009 - 1:15 PM

Bank of Spain - Photo Typically Spanish

The Bank of Spain says the recession is slowing down

The Bank of Spain has said it has noted that the recession is advancing ‘at a less intense rhythm’.
A statement from the bank Friday said that the first indications from the second quarter showed that the slowdown in consumer spending and the increase in unemployment had both stopped.
The Bank of Spain used its statement to repeat earlier calls on banks and savings banks to save costs and close branches as part of a needed restructuring of the sector.
The AEB, the bank association, has meanwhile forecast ‘serious difficulties’ for some entities.
Meanwhile the Catalan Government has announced an appeal against the 9 billion € fund from Central Government set up to help the liquidity of banks and savings banks in Spain. The Catalans consider that the fund invades their responsibility in the matter.

Spain’s National Competition Commission, CNC, has announced it is to take precautionary measures against the power companies in the country considering that Endesa, Iberdrola, HC, Unión Fenosa and E.ON have been putting obstacles in the way of those who want to change their electricity supplier.
The sector was liberalised on July 1, but a late decision from the Government on the maximum possible price, and a general lack of clear information has resulted in very few people changing supplier.
The commission is now demanding that all the supply companies grant free access to each other for the data needed for the change in supplier process to be started.
Iberdrola has responded to the charges and has said that it has always acted legally and in the time limits established by the Government.

Despite the fall in unemployment in Spain there is no sign of any recovery in the industrial sector with a further slight worsening in industrial production in May, in what is the 13th consecutive month for falls. Compared to a year ago industrial production in Spain is down 20%, 1% more than in April.

The Government is to approve a new Plan Prever this time designed to boost sales of motorbikes. Following the success of the scheme during June aimed at boosting new car sales, now help of up to 500 € is to be made available to those buying a new bike, following a 50% fall in the number of new registrations since January this year.

Ecologists have announced demonstrations against the Government’s decision to keep the Garoña nuclear power station in Burgos online until 2013, two years after its initial lifespan. On the other side of the coin workers and the owners of the plant say they will also appeal the decision, wanting the facility to remain open for even longer.

And finally,
As Spain enters the two months of the high tourist season, hoteliers claim that reduced prices of between 8% and 15% will see national travellers take up the space vacated by fewer international tourists. Figures show that national tourism has overtaken foreign tourism for the first time, although the Secretary General of the Spanish Confederation of Spanish Hotels and Tourist Apartments also notes that although the Spanish are still taking their holidays they are spending less. They have also noted that the Spanish custom of the weekend getaway, which did represent as much as 40% of the income of the sector, has reduced considerably.

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