With so much uncertainty in the Spanish property market, buyers are unsure whether property prices reflect what is really happening or whether it is a case of political propaganda putting on a good face, forum gossip from disgruntled boom buyers, or simply optimistic price-setting amongst hopeful sellers. The picture is further confused by demand factors and international interests that create differing influences in each of the local property markets across the country. What is happening in Barcelona, Ibiza or the Costa Brava, for example, may not be what is happening in Madrid or Marbella. Expat influences in property also differ from the demands and influences of local buyers. “The … [Read more...] about Expats seize the day amid Spain’s property market uncertainty
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Fear and resignation in Spain’s deficit cap
A swiftly agreed, bi-party accord to safeguard the Spanish economy’s future. It should be music to every Spaniard’s ears. The governing Socialists and opposition Popular Party have finally reached consensus on a major issue, putting aside their ideological differences and petty electoral interests to introduce a constitutional reform that puts a cap on the public deficit. Such statesmanship harks back to the spirit of the Transition. Or does it? Having heeded the plea by the French and German leaders for deficit controls to be enshrined in eurozone magna cartas, José Luis Rodríguez Zapatero and Mariano Rajoy have responded. This extraordinary measure, they argue, will calm the jittery … [Read more...] about Fear and resignation in Spain’s deficit cap
All too predictable
Under the Greece-evoking headline, ‘Hidden’ debt raises Spain bond fears, Financial Times Madrid correspondent Victor Mallet proceeded to outline the hypothesis of Spanish Cato Institute fellow (and vocal political activist, if it need be said given the company he keeps), Lorenzo Bernaldo de Quirós, that the probable overturning of many regional and local governments in the upcoming vote would result in 26.4 billion euros of concealed debt – specifically attributable to the myriad government-owned corporations conjured into existence for a variety of motives - being brought out into the open. Ignoring for the moment how Mr. Bernaldo de Quirós might have come up with so specific a figure … [Read more...] about All too predictable
The market tears up Zapatero’s social contract
“My government’s ambition is to make this an innovative, creative, entrepreneurial country while upholding the social welfare state… I think we should learn the lesson of the Great Depression: when an economy enters a deep recession, the only way we can come out of it is from a big push from the public sector.” José Luis Rodríguez Zapatero uttered these words less than a year ago. At the time, with Spain mired in recession, critics could argue with his ideological stance, but nobody could doubt his convictions. However, the prime minister’s announcement on May 12 of a broad and radical raft of austerity measures has seen him perform the biggest U-turn of his six years in government … [Read more...] about The market tears up Zapatero’s social contract
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