Archives for May 2009

May 29th, 2009

The economist, John Maynard Keynes, once argued it would be preferable to pay workers to dig holes in the ground, and fill them in again, rather than allowing them to stand idle and deprive the economy of the multiplier effect of their wages. Moving a 17-meter monument to Christopher Columbus 100 ...

Continue reading Spanish Economy Plan E: Let Them Dig Holes

May 27th, 2009

According to the latest house price analysis from Knight Frank, the Spanish property market isn't faring too badly compared to some other countries. Just focusing on countries which have experienced a year-on-year decline in house values, Spain is far from the worse affected. At the bottom of the chart are Dubai and ...

Continue reading Knight Frank Q1 Report

May 27th, 2009

According to the latest house price analysis from Knight Frank, the Spanish property market isn't faring too badly compared to some other countries. Just focusing on countries which have experienced a year-on-year decline in house values, Spain is far from the worse affected. At the bottom of the chart are Dubai and ...

Continue reading Spanish Property: Not So Bad by Comparison

May 27th, 2009

In a series of recent gloomy economic forecasts by the European Commission, the European Central Bank, the Spanish Central Bank and government institutions, the Spanish unemployment rate could soar to a staggering 20 percent and possibly to one in four workers in 2010. “The momentum is clearly there for something well ...

Continue reading Spanish Unemployment Could Reach 1 in 4

May 26th, 2009

This week, the article concerning the relative optimism voiced by OCED chief, Angel Gurria, stands in stark contrast to the pessimistic forecast expressed by Moody's - which, in turn seems to conflict with the article entitled 'Spanish Bad Debt Abating'. In fact, all three stories describe the same picture - but ...

Continue reading Same Spanish Data – Different Stories

May 26th, 2009

Contraction in world economic output appears to be slowing and a recovery could begin at the end of this year, Organization for Economic Development and Cooperation (OECD) chief Angel Gurria said on Friday. Indicators ranging from U.S. house sales to Chinese exports are beginning to pick up and the global economy ...

Continue reading OECD: Global Recovery by Year-end

May 25th, 2009

Bad debt problems at Spanish banks and cajas, the regional savings and loans institutions, have triggered at least one skipped interest payment on a mortgage-backed bond this week and prompted new warnings of imminent downgrades by credit rating agencies. Caja Madrid, Spain’s fourth biggest financial institution, on Wednesday confirmed that a ...

Continue reading Spanish Building Society Downgrade Risk

May 22nd, 2009

The European Parliament has called on Spain to reform planning laws that have allowed developers to acquire private land below market rates and forced homeowners from their properties, with some even having their homes demolished. But the conflict raises questions about how much power MEPs actually have. When Len and Helen ...

Continue reading MEPs Wave Financial Stick at Spain

May 20th, 2009

Spanish bad debt rose at the slowest rate in 15 months in March as savings banks reined in lending and cut defaults, Bank of Spain data showed on Monday in the latest sign the country's recession may be finding a floor. The volume of bad debt rose by 769 million euros ...

Continue reading Spanish Bad Debt Abating

May 19th, 2009

Last week, the ECB announced the purchase of 60 billion euros of covered bonds or cédulas hipotecarias. In doing so, the ECB is effectively buying into the Spanish property market. This is obviously very good news from a Spanish point of view. The Spanish economy is in the throes of a ...

Continue reading ECB Buys into Spanish Property

May 18th, 2009

Spanish Q1 GDP drops 1.8 pct, worst in half century; GDP down 1.8 pct qtr/qtr, 2.9 pct yr/yr; Steepest fall since 1959, according to economists; Reinforces expectations of Q1 euro zone contraction; Spain could be last EU country to exit recession; Spain approves 1 bln euro spending cut Spain's economy suffered ...

Continue reading Spanish Economy at 50 Year Low

May 15th, 2009

Spanish house sales fell at the slowest pace in 11 months during March, the National Statistics Institute reported on Tuesday, marking the latest data to suggest Spain's severe recession may be easing. Home sales fell 24.3 percent to 34,895 in March in what was the 13th straight month of decline, but ...

Continue reading Spanish Property Slowdown Slows

May 12th, 2009

Spain's prime minister will propose new economic stimulus measures and an anti-crisis pact in Tuesday's State of the Nation debate, ruling Socialist legislators said on Monday. Spanish leader Jose Luis Rodriguez Zapatero will press for extra benefit payments for the unemployed, a public spending boost and urge unions, employers and political ...

Continue reading Spanish State of the Nation

May 11th, 2009

European commercial property recovery not due till 2011 Falling rents puts potential European price rise on hold UK prices to fall 18 pct, rents to drop 11 pct in 2009 Spain to suffer strongest correction over next two years French, German markets to see milder repricing than Spain The decline in European commercial property capital ...

Continue reading European Commercial Property Predictions

May 8th, 2009

Many Britons who let out their second home in Spain could now be eligible for a tax rebate windfall from HM Revenue & Customs. From 6 April, 2010, furnished holiday lets in the UK will no longer be treated as business assets, against which owners can offset losses against their other ...

Continue reading UK Tax Break for Holiday Home Landlords in Spain