Spain Business Brief - Friday March 12 2020

Spain Business Brief - Friday March 12 2020
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By h.b. - Mar 12, 2010 - 2:02 PM
Germany prepared to expel defaulting countries from the Euro, as massive regional debts revealed in Spain

European Central Bank - EFE

Germany has said that it is prepared to expel countries which fail to meet the requirements from the Euro. Finance Minister, Wolfgang Schäuble, defended such action in ‘extreme’ cases, and said that such a country could however still remain a member of the European Union. He made his comments in an interview in today’s Financial Times Deutschland, comments which will be noted closely by Greece.

The Bank of Spain has said that Cataluña, Valencia and Madrid were the three regions of Spain with the highest debt in 2009.
Cataluña owes 22.6 billion, Valencia 14.3 billion and Madrid 11.6 billion.
Total debt of the Spanish regions reached 86.28 billion € last year, an increase of 26%. The amount represents 8.25% of G.D.P.
Other regions debt are as follows : Andalucía, 9.840 billion, Galicia (4.783 billion), Castilla-La Mancha (4.074), Baleares (3.289), Castilla y León (3.237), País Vasco (2.519), Canarias (2.352), Aragón (1.890) , Murcia (1.348), Navarra (1.112), Extremadura (1.086), Asturias (1.080), Cantabria (662) and La Rioja (507).

Debt of local town halls has now reached another 34.594 billion €, up 9% on 2008 and representing 3.3% of GDP.
Madrid City Hall showed the largest debt at 6.76 billion, 23.5% of the total debt of all town and city halls across the country.
Next came Valencia with 835 million, Barcelona with 753 million, Zaragoza with 752 million, Málaga with 738 million and Sevilla 522 million.

Inflation fell in February by two points, with lower transport, the sales, and food costs leading the reduction which takes the annual general index to 0.8%.

Speaking to a shareholders meeting today, the Chairman of the BBVA, Francisco González, has said that the reality is that there is no demand for credit currently. He said the bank had not closed the credit tap.
He also made a call for the banks which are no longer viable to restructure as soon as possible.

Agreement is reported at the Opel plant at Figueruelas. After ten hours of meetings on Thursday the workers committee and management have reached the basis of an agreement to make savings, but which sees no sackings of fixed workers, although 900 jobs will be lost.

A report by the consumers advice group CEACCU has said that Spaniards invest their savings without thought, knowledge, and generally pressurised by their bank. The report says that in 70% of cases the banks don’t offer the client time to revise any contract, and that one in four savers does not keep all the documentation anyway.

Gerardo Díaz Ferrán’s partner in the Grupo Marsans, Gonzalo Pascual, has been obliged to take over the management of the travel group after the general director, José María Lucas, resigned, for ‘personal and professional reasons’. He’d been in the company for 14 years. The owners are currently trying to sell the business.

And finally,
The Apple iPad has been voted the winner of the Barcelona technology fiasco awards 2010. The device, which is still to go on sale obtained 4,325 of the 7,000 votes.

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