Spain Business Brief - Monday February 8 2010

Spain Business Brief - Monday February 8 2010
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By h.b. - Feb 8, 2010 - 1:03 PM
Unemployment in Spain double the OECD average

Photo EFE

The OECD has noted that unemployment in Spain is double that of the average in developed nations. A statement from the Organisation for Economic Cooperation and Development says that at the end of December unemployment here was 19.5% where as the average in developed countries was 8.8%. They note that the over the last two years the average number of unemployed in Spain has increased by more than ten percentage points.

Meanwhile the Fitch ratings agency has said that the situation in Spain is ‘worrying’, but there is no risk of contagion of the deficit crisis to other countries in the Eurozone.

José Blanco, Minister for Development, considers that there is a pre-meditated attack underway by speculators on the markets against Spain. ‘Now they see we are coming out of recession they do not want to see greater controls of the markets so they can continue as before’ he said.
Blanco has also made a fierce defence of Spanish Prime Minister, José Luis Rodríguez Zapatero, considering that there is also an orchestrated campaign against him.
Mariano Rajoy, PP leader has meanwhile said that they are all ready to govern now.

The number of families going bankrupt in Spain has doubled over the past year, while the number of companies going bust has multiplied by five, according to data just released by the National Statistics Institute – INE.
The number of families who could not meet their payments and debts in 2009 rose to 938, while the number of companies in the same situation reached 4,984.

Minister for Tax and the Economy, Elena Salgado, and the Secretary of State for the Economy, José Manuel Campa, are to travel to London and Paris in an attempt to calm the financial markets. Meetings are planned with investors and analysts in each city.

The Financial Times reports Monday that Santander is considering floating part of its British and United States operations on the stock market. A similar operation with its Brazilian subsidiary in October brought the bank 7 billion dollars. The paper claims that Abbey would be first in the UK, and then the Sovereign Bancorp would follow in the United States.

Meanwhile the BBVA has announced the freezing of the pension of its Chairman, Francisco González, at 79 million. The board has also voted to freeze his salary too.

New Chairman of Caja Madrid, Rodrigo Rato, has warned the workforce in the savings bank that they face ‘delicate moments’. He said that this year the bank faces a complicated economic environment, and that many of the banks clients are still to find themselves unemployed. Companies which need to modernise will find the process as difficult and costly as it is necessary, he said.

The President of the Xunta de Galicia, Alberto Núñez Feijóo, has called on the cabinet not to make the ‘historic mistake’ of leaving his region without any savings banks. It follows the publication of the Government’s plans to reform the Galician Cajas announced last Friday.

Gerardo Díaz Ferran, the Chairman of the CEOE Employers Organisation, has been accused in El Mundo today of taking 238 million € from the Marsans accounts without justification. It came as part of a debt refinancing in December and the paper notes that the Government has now asked banks to open up credit to the travel firm.
Meanwhile the CEOE employers have reminded the Government that confidence will be regained ‘by doing things’ and not just preaching.

A poll in El Mundo today shows that 82% of the Spanish people do not support the Government’s handling of the economic crisis, although it also shows that only 37% think the PP would do any better. There is also ‘massive rejection’ of the idea of delaying retirement age to 67.

Celestino Corbacho, Minister for Employment, has put a limit date of April by which Government and Unions have to reach a deal on fighting unemployment and labour reform. Both sides say they want to see rapid agreements.

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