Spain Business
Spain Business Brief - Friday February 22 2008
By h.b.
Feb 22, 2008 - 12:59 PM

The state of the economy has dominated the debate between the two main political parties in Spain at the start of the election campaign. A TV debate last night between the Minister for Tax and the Economy, Pedro Solbes and the PP spokesman Manuel Pizarro, is considered by most observers to have been won soundly by the minister. Interestingly the programme grabbed an audience of nearly five million.
Today Solbes has revealed a current account surplus in Spain for last year of 2.23% of GDP – a new record, with most of the savings coming from central administration.
Meanwhile Endesa informed the National Commission for Market Values, the stock market regulatory body in Spain, that it paid 22 million € to Pizarro as part of his leaving deal from the company when it was taken over by Acciona and Enel.

Crédit Agricole has obtained permission from the Bank of Spain to increase its shareholding in Bankinter to 29.9%. The number takes it to just below the level above which the bank would be obliged to launch a take over bid, and comes as part of its expansion strategy in the European banking market. The news was welcomed by the IBEX today which saw the shares in the Spanish bank rise by 5.58%.

The Bolivian subsidiary of Repsol YPF has lost another court battle on charges of tax evasion. Andina, which has a 50% RepsolYPF shareholding and is 48% owned by the Bolivian state, has accumulated a total debt in judicial processes against the prosecutor of some ten million €.

The European Commission has authorised the take over of the Spanish construction group Sacyr by the French company Eiffage. The latter already has a 33% shareholding, and the EU has considered that the take over will not significantly effect competition in Europe.

Latest numbers show that less than half the 16 to 29 year olds employed in Spain have a fixed contract. The number comes in at 47% and the only regions of the country where it is more than half are Aragón, Cataluña, Madrid and La Rioja. The data is from the Employment Observatory for youth employment in Spain.

And finally,
The retirement pension in Spain increases by 7.1% in February to reach 808 € 44. The average payments in the Social Security system, in retirement, incapacity, widows and similar pensions, increase by 6.8% to reach 714 € 91.