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Propose to freeze all EU-funds to Spain
The Report produced by Danish Euro-Deputy Margrete Auken proposes to freeze all EU-funds to Spain until it has declared a moratorium on all non-sustainable house building projects, which do not respect the right to property ownership and which are contrary to Community Law.
The report will be presented to the Commission of Petitions and then to a plenary meeting of the Parliament, probably in March 2009.
Habitat in bankruptcy….
The fifth largest property company in Spain, Habitat, has started bankruptcy proceedings. It has unpaid debts of 2,300 million euros, most of which stem from the purchase of Ferrovial’s property division, immediately before the crisis in the property sector became evident.
….and Pedralbes as well
The construction company Pedralbes, with debts of 154.5 million, has gone the same way. Subsidiary companies Comfour, Copesa, Alfaisa and Cohesa Gracia are also bankrupt. The constructor had offices in Barcelona, Madrid, Parla, Seville, Malaga, Valladolid, Las Palmas and Santander and has a number of half-finished projects.
Faster payment of traffic fines
The Government has proposed a new traffic law, which reduces the “voluntary” period for the payment of traffic fines. Instead of 30 days, in future one will have only 15 days to protest a fine or pay it, otherwise it will be considered that you have accepted it. You will be notified by the traffic authorities only once of your alleged offence, instead of 3 times as at present.
Fines are also being increased: For minor offences, the present 90 euros fine will jump to 100 euros; fines for serious offences rise from 301€ to 600€, to 2,000, whilst very serious infractions will in the future cost 5,000 euros, instead from 301 to 600.
40% of all traffic fines are never paid !
8,000 million euros for local works
Due to the desperate financial situation of Spanish municipalities, the National Government has announced a plan for local infrastructure work for 2009. The 8,000 million euros backing the plan will be distributed according to the number of registered inhabitants in each municipality. The Government hopes to provide work for 200,000 people by this injection.
As funds and resources are allocated to local authorities according to the number of inhabitants, it is important that everyone living in Spain register on the ‘Padron’ with their town hall. If you do not register it’s no good complaining later.
3 million unemployed
171.243 people went into the ranks of the unemployed during November. That brought the total unemployment to 3 million. Over the last 12 months 849.796 employees have been made redundant.
1 million of the unemployed do not receive any unemployment support.
No cuts in notary fees
The Government has decided to not proceed with its proposal to reduce the fees of notaries and registrars, by 20% from 1st January 2009. (We reported on this in last weeks Report). The retreat of the Government is due to frenetic protests from notaries and registrars, who saw in the proposal “a threat to their existence.”
Inflation and Euribor down
The preliminary November figure for inflation shows a further slow down in its growth. This year’s inflation now stands at 2.4%.
The index for interest on mortgage loans, the Euribor, is down to 3.921%, its lowest since December 2006.
Ibex, the index for the Spanish stock exchanges, has improved again and recorded on Wednesday morning 8.834,70 points.
Car sales drop 49.6% in November
Registration of new cars dropped 49.6% in November compared with 2007. The sale of 4 wheel drive vehicles fell 75.4%. Only the Romanian-produced Dacia increases its sales. Car sales are down 26% over the first eleven months of the year.
New rules for holiday letting in Valencia Region
A new set of rules for short term letting of dwellings to tourists, aimed at the ten thousand holiday letting being advertised on the Internet, have been presented by the Tourist Minister in the Region. The rules will make it easier to clamp down on owners not declaring the income to the Spanish tax man.
Several sets of such rules have been adopted previously, none of which have worked.
Blocking “Costas” in Galicia
With regional elections to be held in 4 months, and with a huge outcry against the strict application by the National Government of the “Ley de Costas,” the Galicia Regional Government (led by the socialist party) has changed its law on dwellings “blocking the Costas”. The changes make it possible for the Regional Government to decide which coastal settlements may be considered for construction on “suelo urbano” (building land) instead of “suelo rustica” (farm land). On building land the ‘zone of coastal protection’ is reduced from 100 to 20 meters.
Property gangsters arrested on Costa del Sol
Police have arrested 2 people and are searching for number of others, who have duped several hundred foreign clients in an Internet property scandal, to invest millions of euros in non existing projects along Costa del Sol. Some of the clients were investors in the scheme whilst others bought dwellings as holiday homes or for their retirement.
“La Marina” investigated by EU
A development of 1,200 dwellings has been proposed in the area La Marina in the Municipality of Elche ‘next to a pine forest.’ Ten thousand local inhabitants have protested against the project and the Commission of Petitions in the European Parliament has ordered the European Commission to commence an investigation. The Commission will also include the project in their next report.
Many small plot-owners in the area are being pressurised by the big promoters to accept the project. An owner of a 2,000 m2 plot of land will have to pay 112,800 euros for planning and infrastructure costs and will get the right to 594 m2 building land in a joint project, or they may exchange the 2,000 m2 plot for an apartment.
Andalusia: Big investigation into illegal properties
A group of 36 investigators are mounting a large-scale investigation into illegal building in seven areas in Andalusia. The areas are Axarquia (eastern Costa del Sol) the Vejer area on Costa de la Luz, Medina Azahara in the Cordoba Province, Valle de Almanzora in Almeria, Freilas and Quesada. So far 57 people have been arrested in Chiclana (Cadiz) including builders, assessors and estate agents. There are 30.000 illegal dwellings in Chiclana.
Some 200 Britons who unwittingly bought illegal houses have formed an association to work for the legalisation of their properties. “We used an estate agent, a lawyer and a notary – even the bank we got our mortgage from looked over the paperwork and everybody said it was okay,” said Colin Wood, Chairman of the Chiclana Foreign Residents Association.
Valencia: Searches in 265 municipalities
The Prosecutor for the Environment in the Valencia Region has also initiated an investigation into building illegalities, by sending a letter to 265 municipalities asking for a report on dwellings built illegally. 40,000 illegal dwellings have been pinpointed in the municipalities, which include Orihuela, Sueca, Catral, Castellon de la Plana, Villajoyosa, Zarra and Onteniente. More is to come.
The Report produced by Danish Euro-Deputy Margrete Auken proposes to freeze all EU-funds to Spain until it has declared a moratorium on all non-sustainable house building projects, which do not respect the right to property ownership and which are contrary to Community Law.
The report will be presented to the Commission of Petitions and then to a plenary meeting of the Parliament, probably in March 2009.
Habitat in bankruptcy….
The fifth largest property company in Spain, Habitat, has started bankruptcy proceedings. It has unpaid debts of 2,300 million euros, most of which stem from the purchase of Ferrovial’s property division, immediately before the crisis in the property sector became evident.
….and Pedralbes as well
The construction company Pedralbes, with debts of 154.5 million, has gone the same way. Subsidiary companies Comfour, Copesa, Alfaisa and Cohesa Gracia are also bankrupt. The constructor had offices in Barcelona, Madrid, Parla, Seville, Malaga, Valladolid, Las Palmas and Santander and has a number of half-finished projects.
Faster payment of traffic fines
The Government has proposed a new traffic law, which reduces the “voluntary” period for the payment of traffic fines. Instead of 30 days, in future one will have only 15 days to protest a fine or pay it, otherwise it will be considered that you have accepted it. You will be notified by the traffic authorities only once of your alleged offence, instead of 3 times as at present.
Fines are also being increased: For minor offences, the present 90 euros fine will jump to 100 euros; fines for serious offences rise from 301€ to 600€, to 2,000, whilst very serious infractions will in the future cost 5,000 euros, instead from 301 to 600.
40% of all traffic fines are never paid !
8,000 million euros for local works
Due to the desperate financial situation of Spanish municipalities, the National Government has announced a plan for local infrastructure work for 2009. The 8,000 million euros backing the plan will be distributed according to the number of registered inhabitants in each municipality. The Government hopes to provide work for 200,000 people by this injection.
As funds and resources are allocated to local authorities according to the number of inhabitants, it is important that everyone living in Spain register on the ‘Padron’ with their town hall. If you do not register it’s no good complaining later.
3 million unemployed
171.243 people went into the ranks of the unemployed during November. That brought the total unemployment to 3 million. Over the last 12 months 849.796 employees have been made redundant.
1 million of the unemployed do not receive any unemployment support.
No cuts in notary fees
The Government has decided to not proceed with its proposal to reduce the fees of notaries and registrars, by 20% from 1st January 2009. (We reported on this in last weeks Report). The retreat of the Government is due to frenetic protests from notaries and registrars, who saw in the proposal “a threat to their existence.”
Inflation and Euribor down
The preliminary November figure for inflation shows a further slow down in its growth. This year’s inflation now stands at 2.4%.
The index for interest on mortgage loans, the Euribor, is down to 3.921%, its lowest since December 2006.
Ibex, the index for the Spanish stock exchanges, has improved again and recorded on Wednesday morning 8.834,70 points.
Car sales drop 49.6% in November
Registration of new cars dropped 49.6% in November compared with 2007. The sale of 4 wheel drive vehicles fell 75.4%. Only the Romanian-produced Dacia increases its sales. Car sales are down 26% over the first eleven months of the year.
New rules for holiday letting in Valencia Region
A new set of rules for short term letting of dwellings to tourists, aimed at the ten thousand holiday letting being advertised on the Internet, have been presented by the Tourist Minister in the Region. The rules will make it easier to clamp down on owners not declaring the income to the Spanish tax man.
Several sets of such rules have been adopted previously, none of which have worked.
Blocking “Costas” in Galicia
With regional elections to be held in 4 months, and with a huge outcry against the strict application by the National Government of the “Ley de Costas,” the Galicia Regional Government (led by the socialist party) has changed its law on dwellings “blocking the Costas”. The changes make it possible for the Regional Government to decide which coastal settlements may be considered for construction on “suelo urbano” (building land) instead of “suelo rustica” (farm land). On building land the ‘zone of coastal protection’ is reduced from 100 to 20 meters.
Property gangsters arrested on Costa del Sol
Police have arrested 2 people and are searching for number of others, who have duped several hundred foreign clients in an Internet property scandal, to invest millions of euros in non existing projects along Costa del Sol. Some of the clients were investors in the scheme whilst others bought dwellings as holiday homes or for their retirement.
“La Marina” investigated by EU
A development of 1,200 dwellings has been proposed in the area La Marina in the Municipality of Elche ‘next to a pine forest.’ Ten thousand local inhabitants have protested against the project and the Commission of Petitions in the European Parliament has ordered the European Commission to commence an investigation. The Commission will also include the project in their next report.
Many small plot-owners in the area are being pressurised by the big promoters to accept the project. An owner of a 2,000 m2 plot of land will have to pay 112,800 euros for planning and infrastructure costs and will get the right to 594 m2 building land in a joint project, or they may exchange the 2,000 m2 plot for an apartment.
Andalusia: Big investigation into illegal properties
A group of 36 investigators are mounting a large-scale investigation into illegal building in seven areas in Andalusia. The areas are Axarquia (eastern Costa del Sol) the Vejer area on Costa de la Luz, Medina Azahara in the Cordoba Province, Valle de Almanzora in Almeria, Freilas and Quesada. So far 57 people have been arrested in Chiclana (Cadiz) including builders, assessors and estate agents. There are 30.000 illegal dwellings in Chiclana.
Some 200 Britons who unwittingly bought illegal houses have formed an association to work for the legalisation of their properties. “We used an estate agent, a lawyer and a notary – even the bank we got our mortgage from looked over the paperwork and everybody said it was okay,” said Colin Wood, Chairman of the Chiclana Foreign Residents Association.
Valencia: Searches in 265 municipalities
The Prosecutor for the Environment in the Valencia Region has also initiated an investigation into building illegalities, by sending a letter to 265 municipalities asking for a report on dwellings built illegally. 40,000 illegal dwellings have been pinpointed in the municipalities, which include Orihuela, Sueca, Catral, Castellon de la Plana, Villajoyosa, Zarra and Onteniente. More is to come.
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