“Bulgarian girl, 21 years old, available at homes and hotels from 12am to 9pm.” “Alina, all services €30, no limits.” “We are a couple of friends willing to give you pleasure and relaxation with utmost discretion.” For decades adverts for sexual services - ranging from the tactful to the graphically explicit - have filled the classified ads pages of Spanish newspapers. In a country where prostitution is neither legal nor illegal the personal ads sections of local tabloids, national dailies and magazines have long been the preferred medium for prostitutes and brothels to publicize their services. But under new proposals recently unveiled by the government, such adverts could soon be … [Read more...] about Sex for money… but don’t advertise it
economy
Spain and Portugal’s right shun austerity and Brussels – for now
It’s easy to see parallels between the governments of Spain and Portugal of recent years. José Luis Rodríguez Zapatero and José Sócrates were both fresh-faced Socialists when they took power in 2004 and 2005 respectively, promising social reforms as well as economic stability. Both were voted in for second terms before running aground on the challenges that arose following the world economic crisis. Like their Socialist counterpart in Greece, Georgios Papandreou, both men have been forced by circumstances to repress their political instincts and introduce heavy spending cuts and painful reforms. In Portugal, where the economic outlook is worse, the opposition’s withdrawal of support for a … [Read more...] about Spain and Portugal’s right shun austerity and Brussels – for now
Spain held hostage by its banks
When the global financial crisis erupted in 2008, the Bank of Spain was one of few regulators lauded for having had the forethought to enact measures aimed at protecting the banking industry. It had prevented Spanish banks and savings banks from handing out the junk loans that brought down several American lenders, and, uniquely, it created a €40-billion “anti-crisis” fund at a time when many shorter-sighted bankers, economists and analysts thought the credit boom, on the back of low interest rates and rising property prices, would continue indefinitely. Four years later, Spain’s economy is now being held hostage by its banking industry as fears about the ability of banks and, in … [Read more...] about Spain held hostage by its banks
A new slowdown in Spain
The government wants motorists to reduce their speed to cut Spain’s fuel bill amid rising oil prices. But will forcing drivers to go 10 kph slower save anyone any money and, more to the point, cushion the impact of the North African uprisings on the Spanish economy, as the government evidently hopes? Though physics dictates that drivers would indeed see some savings, economics, unlike physics, is not an exact science and chances are that the lower speed limit on Spain’s highways, effective from today, will do little to protect the economy from rising energy costs. Instead, the rush to impose a new law reducing the highway speed limit from 120 kph to 110 kph smacks of desperation. Not … [Read more...] about A new slowdown in Spain
Political turmoil threatens to rock Spain’s recovery
Only a few weeks ago, the big argument raging about Spain was whether or not it was “the next Greece”. The size of its deficit, difficulties in getting the economy growing again and its harsh treatment at the hands of international markets all made it look like the prize candidate for the EU’s next massive bailout. Many observers suspected a visit by IMF head Dominique Strauss-Khan to Madrid in June was the prelude to just such a move as José Luis Rodríguez Zapatero’s handling of the economy came under immense scrutiny. Now, however, the situation is slightly different. The bailout has not transpired and while the country has certainly not emerged blinking in the sunlight of market … [Read more...] about Political turmoil threatens to rock Spain’s recovery
Time to end Spain’s labour market apartheid
Take a look at a crowded street in any Spanish city and you will see two classes of workers. You won’t be able to distinguish them by their clothes, their skin colour or their schooling. But when they show up for work, receive their payslips at the end of the month or think about their future, they are very different. One group, let’s call them the fijos, feel more secure and more confident. With fixed contracts from their employers, they know they can’t be laid off easily - or cheaply - even in the current recession-bound economy. They don’t have to worry about their bosses renewing their contracts every month, every six months or every year. They may get training to advance their … [Read more...] about Time to end Spain’s labour market apartheid
History repeats in Portugal
Walk the streets of any Portuguese city and sooner or later you will come across a scene that seems unchanged for decades: shoe-shiners on Lisbon’s Avenida da Libertade, elderly ladies hanging laundry from tumbledown balconies in old Porto or fish sun-drying on the beach in Nazaré. One of Europe’s most unassuming and introverted countries, Portugal is a place where the past is gazed upon with a sense of melancholy – until, of course, the past comes back with a bite. Since late January, Portugal has taken a battering on international markets, as its bond prices have plunged and ratings agencies have threatened to cut the country’s credit grade amid fears over rising budget deficits and … [Read more...] about History repeats in Portugal
Navigating the impossible?
For someone who sets such great store by being photographed alongside the right people, January 28 was a fairly awful day for the Spanish prime minister. At the Davos World Economic Forum, José Luis Rodríguez Zapatero was pictured sitting between Greece’s Giorgos Papandreou and Latvia’s Valdis Zatlers. The inference was clear: Spain was in the same boat as Greece, which the EU has now agreed to help resolve its enormous public financing problems, and Latvia, which has Europe’s highest unemployment rate at nearly 23 percent. Much was made of the gaff by Zapatero’s handlers, who failed to put him in more reassuring company. But it was only the beginning of a perfect economic and political … [Read more...] about Navigating the impossible?
Saving the pension system
For many years politicians, economists and demographers have been nervously watching a slowly ticking economic and social time-bomb. It is set to detonate – depending on your calculations – sometime after 2025 as an aging population and shrinking workforce combine with explosive effect, undermining the financial foundations of the Spanish pension system and rupturing the welfare state. Prime Minister José Luis Rodríguez Zapatero, who might like to imagine himself as a Hollywood action hero putting his life on the line to cut the red wire and defuse the bomb, has decided to risk his political future to reform the pension system and soften the retirement blow to today's and tomorrow's … [Read more...] about Saving the pension system
Running on Ẽmpty
A year after Spain’s centre-left government officially launched a massive stimulus package known as the Plan Ẽ, workers are still losing their jobs, public debt levels are scaring markets, and the economy is not likely to emerge from recession until 2011 at the earliest. Plan Ẽ, with its billions for public works projects, tax breaks and subsidies, was never intended to be more than a temporary bandage to get Spain through the worst of the fallout from the international financial crisis and the collapse of the domestic real estate and construction sector. But the wounds inflicted on Spain’s once booming economy have turned out to be slow to heal, and tearing the plaster off - as, for … [Read more...] about Running on Ẽmpty