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Shopping basket 60% more expensive
The consumer organisation OCU, in an investigation of 801 shops located in 53Spanish cities, has found it is 60% more expensive now, than the official inflation rate claims, to fill the shopping basket, as it was 18 months ago. The investigation reveals that all kinds of shops have increased their prices, on all types of products. However, it also shows one can save 1,500 Euro per year by choosing the right supermarket.
Promoters not completing infrastructure
The “Asociación Europea de Consumidores y Usuarios” in Torrevieja has denounced several projects, comprising hundreds of homes, in their area where promoters have not completed the infrastructure and have left buyers without the first occupation certificate for their dwellings. This has resulted in them not having proper contracts for water or electricity.
Spain in crisis
- Unemployment rose with a further 217,200 workers being added to the list during the third quarter, bringing the percentage of unemployed to 11.33% of the total labour force (it was 10.44 in the second quarter). There are now 2,598,800 unemployed.
- In this third quarter Spanish families spent 48.7% of their gross income on the purchase of a dwelling, 3% more than one year ago and 12.3% more than in 2005.
- Credit Suisse has ranked Spain in fifth place amongst countries worldwide at the greatest risk in the present situation, adding that the crisis in Spain may endanger the sustainability of the Euro. The bank maintains that to regain competitiveness, Spain must slash salaries by 20%.
- Bad debts in the Valencia-based saving bank CAM more than tripled to 3.2% in September from 1 percent a year ago. CAM has lent heavily to real estate and construction companies, which now account for more than 25% of all defaults.
- The Danish charter company Sterling Airways, for 50 years bringing Scandinavian tourists and property owners to Spain, has gone broke. They have been taken over by Icelandic investors, who are out of cash and credits.
- Sale of construction equipment has dropped by more than 65%. Many of the companies selling or leasing such machinery will probably close down due to difficulties in obtaining financing from the banks.
- The extension of the financial crisis to Argentine is creating problems for several Spanish companies engaged in activities in the South American country. Some are afraid Argentine will nationalise their sister companies. Those affected include: Repsol, Telefonica, BBVA, Banco Santander, Iberdrola and Endesa.
- The promoters Martinsa-Fadesa, who went into bankruptcy in July, have informed their clients that they only have sufficient funds to finish 770 of the 12,500 dwellings they have contracted.
- Three more mayors arrested: José Joaquin Moya, socialist mayor of Bigastro (Alicante) and Juan José Rubio, independent mayor of Zarra (Ayora-Cofrentes) have both been arrested for urbanistic crimes. In Zarra the mayor gave licenses for construction on farmland to a company owned by his son, that sold the houses to British citizens. The mayor of Bigastro is accused on several accounts, among them the auctioning of municipal land for the special plan La Pedrera, with an aparthotel, 200 dwellings and a golf course. Also the mayor of San Fulgencio (Alicante), Trinidad Martinez, has been arrested, together with a number of councilors, in addition to the ex-vice mayor and the police chief that was picked up by the police some days ago. Anyone left?
- The banks Unicaja and Banesto have problems with guarantees they have given for the Aifos promotion “Cala del Sol” in San Fernando, Cadiz. Workers and buyers demonstrated jointly; the workers demanding their salaries and buyers their dwellings. The Malaga promotion company also owes the Bank of Scotland 25 million euros on their Mijas hotel Byblos, where employees are now being laid off.
The consumer organisation OCU, in an investigation of 801 shops located in 53Spanish cities, has found it is 60% more expensive now, than the official inflation rate claims, to fill the shopping basket, as it was 18 months ago. The investigation reveals that all kinds of shops have increased their prices, on all types of products. However, it also shows one can save 1,500 Euro per year by choosing the right supermarket.
Promoters not completing infrastructure
The “Asociación Europea de Consumidores y Usuarios” in Torrevieja has denounced several projects, comprising hundreds of homes, in their area where promoters have not completed the infrastructure and have left buyers without the first occupation certificate for their dwellings. This has resulted in them not having proper contracts for water or electricity.
Spain in crisis
- Unemployment rose with a further 217,200 workers being added to the list during the third quarter, bringing the percentage of unemployed to 11.33% of the total labour force (it was 10.44 in the second quarter). There are now 2,598,800 unemployed.
- In this third quarter Spanish families spent 48.7% of their gross income on the purchase of a dwelling, 3% more than one year ago and 12.3% more than in 2005.
- Credit Suisse has ranked Spain in fifth place amongst countries worldwide at the greatest risk in the present situation, adding that the crisis in Spain may endanger the sustainability of the Euro. The bank maintains that to regain competitiveness, Spain must slash salaries by 20%.
- Bad debts in the Valencia-based saving bank CAM more than tripled to 3.2% in September from 1 percent a year ago. CAM has lent heavily to real estate and construction companies, which now account for more than 25% of all defaults.
- The Danish charter company Sterling Airways, for 50 years bringing Scandinavian tourists and property owners to Spain, has gone broke. They have been taken over by Icelandic investors, who are out of cash and credits.
- Sale of construction equipment has dropped by more than 65%. Many of the companies selling or leasing such machinery will probably close down due to difficulties in obtaining financing from the banks.
- The extension of the financial crisis to Argentine is creating problems for several Spanish companies engaged in activities in the South American country. Some are afraid Argentine will nationalise their sister companies. Those affected include: Repsol, Telefonica, BBVA, Banco Santander, Iberdrola and Endesa.
- The promoters Martinsa-Fadesa, who went into bankruptcy in July, have informed their clients that they only have sufficient funds to finish 770 of the 12,500 dwellings they have contracted.
- Three more mayors arrested: José Joaquin Moya, socialist mayor of Bigastro (Alicante) and Juan José Rubio, independent mayor of Zarra (Ayora-Cofrentes) have both been arrested for urbanistic crimes. In Zarra the mayor gave licenses for construction on farmland to a company owned by his son, that sold the houses to British citizens. The mayor of Bigastro is accused on several accounts, among them the auctioning of municipal land for the special plan La Pedrera, with an aparthotel, 200 dwellings and a golf course. Also the mayor of San Fulgencio (Alicante), Trinidad Martinez, has been arrested, together with a number of councilors, in addition to the ex-vice mayor and the police chief that was picked up by the police some days ago. Anyone left?
- The banks Unicaja and Banesto have problems with guarantees they have given for the Aifos promotion “Cala del Sol” in San Fernando, Cadiz. Workers and buyers demonstrated jointly; the workers demanding their salaries and buyers their dwellings. The Malaga promotion company also owes the Bank of Scotland 25 million euros on their Mijas hotel Byblos, where employees are now being laid off.