Spain Business Brief - Wednesday June 9 2010

Spain Business Brief - Wednesday June 9 2010
larger | smaller
By h.b. - Jun 9, 2010 - 5:48 PM
The World Bank says Spain's situation is very serious

Andrew Burns from the World Bank speaking today - Photo EFE

The World Bank has said the economic situation of Spain is ‘very serious’, although it has also said that the cuts in public spending announced by the government are ‘in the right direction’.
The World Bank voices concern over the ‘extremely high’ unemployment, but considers the measures taken by the Government will stop things from being even worse.
Despite the cuts now being introduced across Europe, the World Bank does not think it likely that developed countries fall back into recession. Indeed their forecast for the world as a whole is improved with a forecast growth of between 2.9% and 3.3% this year, thanks to the emerging countries.

The Government could extend the period for a deal on labour reform to be found yet again. Latest reports indicate that the time could be extended until Sunday if some advance in the discussions between the unions and employers is made on Wednesday. The Government is apparently willing to make the concession if the deal is ‘80% done’. What was to have been the last meeting with unions and employers is due to get underway at 1900 on Wednesday.
However the Minister for Employment, Celestino Corbacho said at lunchtime that he saw an agreement being reached as ‘difficult’.

The Civil Servants union, CSI-CSIF has announced it is breaking with CCOO and the UGT unions, Spain’s largest. It accuses them of having used the strike on Tuesday merely as a test run for a General Strike and not in support of real interest for public sector jobs.
Meanwhile it has been revealed that the number of public sector jobs in Spain has risen by 5.3% since the start of the recession. Cataluña is the region where most jobs have been created, almost at the same rate as private jobs have been destroyed in the region – 16%.

The President of the Junta de Andalucía, José Antonio Griñán, has announced that from 2011 greater income tax will be paid by those who earn 80,000 € a year. It’s the lowest amount of any of the regions who have decided on a similar measure to try and reduce their regional deficit.
Cataluña has announced more tax above 120,000 €, while both Asturias and Baleares have both suggested that they will take action on wages over 100,000 €.

Reported plans to lift electricity prices for domestic users and small businesses by 4% next month are generating much comment in the Spanish media. Electricity bills in Spain have already increased by 26% in price over the past 30 months, and consumers groups have criticised more rises, especially as they are planned at the same time IVA/VAT is set to increase.

Banco Santander has purchased 25% of its subsidiary in Mexico from the Bank of America. The deal values the Mexican bank at 8.37 billion €, 56% more than seven years ago.

The Acciona company is to propose Nick Clegg’s wife, Mirian González, as being an advisor to the company to shareholders at a meeting on Thursday. From Oviedo, she is licensed in law, and the construction and services company have made the move just a week after opening a desalination plant in Edinburgh, their only investment so far in the UK.

And finally.
The IBEX 35 has been rallying today and was up by 1.8% shortly before the close, lifted by Abengoa, Inditex and Banesto. It comes as Inditex has overtaken the BBVA and become the third largest company by value on the Madrid market, with sales in the first quarter up 14% and profits up 63%. Zara opens it virtual fashion store on September 2.

Click here for related stories

mobile |

email this article | print

printer friendly page

More Spain Business

Readers' comments:
Please keep to the subject. Opinions published here are of our visitors, not the Typically Spanish team. Comments which go against Spanish laws or which are libellous are not allowed. We reserve the right to delete any comment we wish. Placing a comment indicates you have read our terms and conditions and privacy policy.

Por favor, céntrate en el tema. Son las opiniones de los internautas, y no las de Typically Spanish. No está permitido verter comentarios contrarios a las leyes españolas o injuriantes. Reservado el derecho a eliminar los comentarios que consideremos fuera de tema. Escribir un comentario indica que has leído nuestros condiciones de uso y politica de privacidad.