Spain Business
Spain Business Brief - Wednesday May 21 2008
By h.b.
May 21, 2008 - 1:10 PM

The slow down in consumer demand and construction in Spain has led to a reduction in the GDP down 0.8% to 2.7%, setting the economy at a level last seen five years ago. The number has been published this morning by the INE, National Statistics Institute.
Over a year the demand from consumers has reduced practically by half down 0.9% to 1.8%, and the construction slowdown is four-fold.
The latest quarterly numbers confirm also the moderation in the creation of new employment and the loss of jobs in the construction industry. Housing construction has fallen for the first time in six years.

The President of the Gas Natural company, Salvador Gabarró, has claimed that the real value of the company is ‘more than double’ that its current value on the stock market – 17 billion €.
He also repeated that he does not forecast any merger with Iberdrola, and said the company did not need corporative deals to continue with current growth levels. Sr Gabarró also expressed an interest from the company in Portugal.

Spanish construction giant FCC has said that it will be making purchases in Europe and the United States. Company Chairman, Baldomero Falcones has said that profits are set to increase by 25% over the next three years as 4 billion € is to be invested in a new strategic plan for the group for 2008-2010. The so-called Plan 10 is designed to look for new opportunities for growth.

23% of Spanish farmers who get grants from Brussels will be affected by the new cut back which is designed by Europe to increase competiveness in agriculture. Direct grants to farmers are being replaced by other rural policies designed to stimulate competition, and a decision has been made to end the milk quota in 2015. Currently in Spain 897,100 farmers receive EU aid, of whom only 2,690 of them obtain more than 100,000 €. For those who get more than 5,000 € there will be a 2% decrease each year from 2009 to reach a 13% reduction in 2012.

Five textile factories are to close in Cataluña with the loss of some 250 jobs. Three companies have presented closure plans to unions in just 10 days, leading to the closure of the five plants. DB Apparel, the old Sara Lee affiliate owns brands such as Abanderado, Princesa and Wonderbra, and is to close two factories in Girona. Most of the 132 to lose their jobs there are women aged over 45, many of whom have been with the company for more than 20 years.

And finally,
El Corte Inglés has agreed its first equality plan for workers with the objective of guaranteeing equal opportunities for men and women in the company. The document is being signed with unions today and will affect the company’s 67,000 workers, of whom 62% are women.