The Spanish banking crisis and the Indignados

The Spanish banking crisis and the Indignados

So, it appears that there may be a ‘run’ on Bankia, Spain’s fourth largest bank – which has just been part nationalized by the Spanish state.  This ‘run’ is being denied, predictably, by the government and the bank itself.  Indeed, it may well be that people are not withdrawing their money as fast as they can from Bankia.  However, the [...]

Recession in Spain (again), by numbers

Recession in Spain (again), by numbers

So, Spain is formally back in recession, with the Spanish economy having lost ground in the last quarter of 2010 (by 0.3%) followed by a further loss (of 0.4%) during the first quarter of 2012.  This is, of course, very bad news – but was entirely predictable. Needless to say, what is less predictable is when Spain will emerge from [...]

Spanish economy, a 'perfect storm' (with EU bailout likely)

Spanish economy, a ‘perfect storm’ (with EU bailout likely)

I am mildly surprised as to why anyone still seriously questions whether Spain will need a bailout from the EU. Why? Because the Spanish economy is in very, very deep trouble.  That may seem an obvious statement but I fear the sheer, almost unresolvable, structural problem of the economy in Spain is not fully understood by many people, despite it [...]

The Spanish economy and the budget in Spain

The Spanish economy and the budget in Spain

As expected, the draft budget in Spain announced on Friday has heralded further massive cuts to Spanish government spending.  Indeed, these cuts will amount to some 27 billion Euros, a figure that is as difficult to comprehend as the sheer size of the debt problem in Spain. So, what will these cuts hit? Well, virtually every aspect of the Spanish [...]

Tax in Spain, Spanish teacher's strike and temporary work contracts in Spain

Tax in Spain, Spanish teacher’s strike and temporary work contracts in Spain

The past few days in Spain have seen some interesting responses to the present economic crisis in Spain including the revival of the wealth tax in Spain.  Meanwhile, in some areas, there is a teacher’s strike in Spain with educators (amazingly!) complaining about an increase in their current working hours.  Finally, temporary work contracts in Spain are being made unlimited [...]

Spanish property and the economy in Spain

Spanish property and the economy in Spain

I was struck recently by an article in the New York Times entitled ‘Newly Built Ghost Towns Haunt Banks in Spain’ which, I think, nicely encapsulated, in an extreme, the problems that beset the economy in Spain.  Certainly, the Spanish economy faces massive problems that revolve almost entirely around property – or at least the vast debts that accumulated during [...]