Spain Brief: Pedro Solbes says the current economic crisis is the most complex that we have ever seen.
The Spanish Minister for Tax and the Economy, Pedro Solbes, has said that any Government help for the troubled real estate company Martinsa would be unjustified, as the company had taken on ‘excessive risks’. He said that it would be ‘very difficult to justify’ the use of taxpayers’ money to help a business with ‘bad luck’. He said that the Government would however show an interest in the homes that people have paid deposits for will finally be constructed. He said the cabinet would be looking for the best possible way forward. Solbes considered that the current problems on the stock market were caused by other factors and not just the Martinsa case. Speaking on Punto Radio today he said that the economic situation was ‘the most complex that we have ever seen’, and said that there were a great number of elements on the table. It’s an interesting comment as Solbes was around during the last crisis in the 90’s.
Spanair has announced it is to sack 1,100 employees, or 29% of its workforce, in a new cut back on costs and as a way of facing the crisis in the airline industry.
The company is also to cut nine routes showing a deficit, and says it will leave some 15 of its planes on the tarmac during September and October which will allow it to save 90 million ˆ. The decision comes after Spanair’s owner, the Scandinavians, SAS, pulled back from plans to sell the airline, and now the priority to come up with a new viability plan.
Spain and Italy lead the European numbers for the fall in sales of new cars across the continent. The number of new cars registered in the first six months of the year here was down by 17.6% compared to the same period a year ago, while the European average was just 2.2% down. Sales in Germany were up by 3.6%.
Roca sanitary ware has agreed with the unions to reduce the numbers of people it wants to lose in the face of falling orders. The previous number of 398 has now been cut to 125 and will only affect those in the company aged between 55 and 64.
The European Union has agreed to give urgent help to fishermen to help them face increased fuel costs, but the help comes with the condition that the fleet undertakes to restructure. The plan has a total budget of 600 million ˆ.
The Spanish tax authorities have carried out 19 registries of banks and financial advisors allegedly linked to the fiscal fraud which has been revealed to have been based in Liechtenstein. The operation was ordered by National Court judge, Santiago Pedraz, who thinks that the assets of more than 200 Spaniards have been hidden in the LGT company in Liechtenstein for tax evasion purposes. Financial advisors in Barcelona, Madrid and Marbella have been implicated in the case.
And finally, some good news – a barrel of texas oil fell by 6.44$ yesterday, the largest single fall seen for 17 years. The barrel now stands at 138.74 dollars.
