Spain Business
Spain Finance & Business - Wednesday February 13 2008
By h.b.
Feb 13, 2008 - 1:05 PM

The Minister for Employment and Social Affairs, Jesús Caldera, has said that the Social Security surplus this year will be more than 8 billion, despite the slowdown in the creation of employment. He said that unemployment could increase again this month however, although the number of people affiliated to the social security system is also expected to increase. Caldera said the Spanish economy was working well and said the number of immigrants without papers living in Spain was 300,000.

The number of families and companies in financial difficulty in Spain has jumped by 28% over the past year. The amount of returned unpaid products reached 11.49 billion € last year, up 28%. The average unpaid amount was 2,244 € according to the latest data from the INE National Statistics Institute. Most unpaid bills were found on the Canaries and in Andalucía.
Bad debt has increased in credit companies and savings banks.

Meanwhile other numbers show that last year 4% fewer companies were created in Spain, with 141,986 companies constituted. The number for the month of December however was 20% down on the previous year, and the numbers of dissolved companies rose by 63% at 17,872.

The Contsa real estate company based in Sevilla has announced the suspension of payments, victim of the current construction slowdown. The company has 1,200 shareholders who could lose hundreds of thousands of Euros. The workforce of 75 last summer now face the street. Group President, José Salas Burzón, claimed the company is still solvent as it has a 30 million € difference between active and passive amounts, but it had been hit by new restrictions on the granting of credit.

Vodafone is to offer what it calls a fixed line via the mobile phone. The British company wants to reduce prices for mobile calls if they are made from the person’s home. The new service would result in an average saving on the bill of 24%. The idea was announced at the Mobile World Congress, currently underway in Barcelona, and will be officially launched next week.

The Spanish region made famous by Don Quixote for its windmills, La Mancha, is now replacing the mills with roulette wheels. Ciudad Real is getting ready to become what is being called the Las Vegas of Europe with a new leisure and tourism centre where the casino will be king. Investment in the project has risen to more than 6.5 billion € over the next three years.

And finally,
If you are considering giving your loved one a dozen roses for Valentine’s Day tomorrow, be aware that prices are 80% higher than normal. Florists are making the most of the demand to send the average price of a bunch to 69 €, compared to the normal 38.