Business over Tapas Nº 557

A digest of this week's Spanish financial, political and social news aimed primarily at Foreign Property Owners:

Prepared by Lenox Napier.  Consultant: José Antonio Sierra

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Editorial:

For those who yearn for a change in the Spanish government, there’s the problem of the leading opposition champion evidently not being the right person for the job.

The hard-to-pronounce (or spell) Alberto Núñez Feijóo had been the president of Galicia and was chosen to take over the leadership of the Partido Popular following the defenestration of Pablo Casado (for criticising on the television the behaviour of his colleague Isabel Díaz Ayuso during the pandemic). Since he can’t talk about the economy – which is doing surprisingly well (now that everyone has been obliged to pay their taxes), Feijóo must concentrate his relentless opposition on the actions of his rival and his crew, whether actually true or basely dreamed up by the innumerable fábricas de bulos which are endlessly circling the ship of state.

Feijóo (pronounce him fay-who) sort of won the election last year (he has the most seats), only he didn’t since he and his allies – the Vox and a couple of tiddlers – weren’t quite enough to win against the coalition of the PSOE and its partners to the left plus some nationalist parties from the north. ‘I could have been president’, he said at one point, if it wasn’t for his partnership with Vox, producing the jocular rejoinder of Pedro Sánchez in the Cortes with "That’s a very good one! Sr. Feijóo, you are not president because you do not want to be. In fact, you have even proclaimed that you are the first Spaniard to renounce being president of the Government when you could have been".

They’ve been at daggers drawn ever since, with Sánchez only last week complaining of Feijóo’s ‘vinegary’ and senseless opposition. Why, he will even go against the opinion of the PPE in Brussels in doomed attempts to pull down either Spain’s standing internationally, or Sanchez’ britches at home.

The party (and its supporters) is beginning to have second thoughts about the Galician (and his troubles back in his home region), his lack of constructive ideas ("When there is a problem with Morocco, the PP goes against the Government of Spain; if there is a problem with Algeria, the PP goes against the Government of Spain; if there is an issue in Venezuela, the PP goes against the Government of Spain; always against the Government of Spain and never in defence of the Spanish people" says a government minister with candour), and his recent performance over Venezuela, where his claim that Spain had plotted with the Caracas government to allow the disputed winner of their recent elections, Edmundo González, to seek asylum in Spain – was afterwards denied by the arch-conservative candidate Edmundo González himself.

Feijóo wouldn’t make much of a president anyway – he gabbles and doesn’t speak English – and waiting in the wings is the abovementioned Isabel Diáz Ayuso, who may be a handful with much baggage, but for some reason – she’s bulletproof. Pretty, too, like Meloni.

Talking of the Italian torpedo, Feijóo was over in Rome a week ago, to discuss immigration from the point of an ultra – however it panned out, Georgia Meloni wouldn’t say – and apart from a stolen snapshot, there’s no record of the summit anywhere in the Italian media.

Now we have the pre-budgets for 2025. The Conservative regions want more money from Central Government, but their colleagues in Parliament said they would be voting against the proposals this Thursday, which would include any increase for the regional autonomies (mostly under PP control). They have unlikely support from the Junts per Catalunya. On Tuesday, the government postponed the vote for another more propitious moment.

Pedro Sánchez certainly has problems to keep his majority, but the loosest of his allies – Junts per Catalunya (the exiled Puigdemont’s rabble) – know full well that they would get short shrift if the PP and its friends at Vox were to somehow take over the government.

So, maybe Sánchez and his reckless claim of three more years is not such a fantasy, and with Feijóo for his rival, he may be right.

As someone says: better a Frankenstein government than a Neanderthal one.  

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Housing:

From Moving to Spain here, ‘The Schengen 90/180-Day Rule in Spain: Don’t Fall Foul’. A full picture on the details of this rule, beginning with: ‘For those of us from non-EU countries like the US and the UK, the 90/180-day rule limits how long we can stay in Spain and other Schengen countries without needing a visa. And with the new EES (Entry/Exit System) coming soon, this rule will be enforced much more strictly since it’ll digitally track the time you spend in the Schengen Zone. If you plan to stay in Spain longer than 90 days, you must secure the appropriate visa or residency…’

From Sur in English here: ‘Foreign buyers account for a third of all homes bought in Málaga and on the Costa del Sol. With 33.5% of such purchases, the province stands in fourth place in Spain for buyers from other countries’. Alicante leads with 41.8% (figures from the APCE association of developers and builders of Spain for 2022).

‘The boom in seasonal rentals: 30% of the apartments advertised in the capitals are now only offered for months. In Cádiz, Barcelona and San Sebastian, the offer of seasonal flats exceeds 60%, a modality that many owners use to circumvent rental regulations and avoid price controls’ – item from elDiario.es here.

‘Hacienda may fine owners of more than one home if they do not use it as their habitual residence and do not declare it in their personal income tax’ says Noticias de Trabajo.

La Ley de Vivienda was bounced in Parliament on September 17 after Junts suddenly pulled out and voted with the PP and Vox. They probably voted against the government to make a political point rather than a practical one. The result was the demise of the housing law, which would have protected tenants from the various threats of higher rents, scarcities and short-term tourist apartments. From El Salto here: ‘More than 30 social organisations and the parliamentary left will mobilise for housing. Following the failure of the regulation of seasonal rentals and the blocking of the Housing Law, a number of groups are calling for a demonstration on 13 October in Madrid and threatening a rent strike’.

It’s not the tourist flats, but the squatters which are causing a shortage of homes in Andalucía says the regional government. elDiario.es thinks otherwise…

Garden shed for rent. 12m2. Badalona. 600€ a month. The story at La Vanguardia here.

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Tourism:

Our local newspaper, Actualidad Almanzora, says that Mojácar tourism is up this year, with the hotels reporting 99.4% occupancy in August (up from 97% last year). The local shops and restaurants however estimate tourist spend this year at 70€ per day, down 15€ from 2023. Instead of Turismo de Sol y Playa, says the newspaper in an aside, we must now talk of Turismo de Selfies y Bocadillos.

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Finance:

The OECD raises Spain's GDP growth in 2024 to 2.8%, which will be four times that of the Eurozone says Europa Press here.

‘Hacienda is managing to uncover significant revenues through the regularisation of undeclared leases. In addition, inspectors are achieving this at a reduced cost: they cross-check data, discover that some taxpayers could be obtaining irregular income from a possible lease and send them a written notice. Thanks to this system, the tax agency has managed to incorporate 1.3 million personal income tax returns that include real estate capital gains since 2015, according to the latest tax control report’ says La Vanguardia.

20Minutos says that ‘Immigration does not lower Spanish wages: foreigners earn 30% less because they do more precarious jobs’.

From Sur in English here: ‘Where does Spain sit on the map of hourly wages in Europe? The country is below the European average, which currently stands at 24 euros per hour’.

From Cinco Días here: ‘The Government is preparing a plan to prevent abusive microloans that can charge customers interest of 3,000%, 4,000% and even 5,000% per annum. The Ministry of Economy has put the European consumer credit directive out for public consultation, which among other issues requires Member States to “introduce measures to effectively prevent abuses and ensure that consumers cannot be imposed excessively high borrowing rates, annual equivalent rates or total credit costs”’.

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Politics:

An interesting week for España, as the government abruptly pulls its debate and vote on the pre-budget rules – known as the senda de estabilidad. ‘The ‘stability path’ (as translated), which includes the deficit and debt targets set for the years 2025 and 2026, approved by the Council of Ministers, would increase the public spending capacity of regional and local administrations by 12,000 million euros’ (La Cadena Ser here). As things stand, we can expect an extension of last year's budget and an unstable legislative period. Education, medical and social services will suffer. The PP had warned that it would vote against, as did both Vox and the Junts – enough to make it fail – but is this good politics for the PP, which controls 12 autonomies?

20Minutos says that the government felt obliged to pull the debate, but suggests that it might come round again later. ‘We shall keep talking with the other parties’, says the spokesperson, as reported in El Huff Post here, blaming the PP for its zeal in bringing a fresh defeat to the Government – at a cost for all Spaniards.  

From Andalucía, the PSOE criticise the president of the Junta de Andalucía, Juan Manuel Moreno Bonilla (PP), for refusing to negotiate improvements in the financing of the Autonomous Community directly with the Government of Spain. And also of putting the interests of Alberto Núñez Feijóo before those of Andalucía by rejecting direct and bilateral dialogue with the Executive of Pedro Sánchez says Público here.

Palestinian President Mahmoud Abbas was in Madrid last Thursday meeting with Pedro Sánchez. Abbas called for a second peace summit in Madrid, as was convened in 1991. “We cannot forget Spain's role in hosting the 1991 peace summit and that is why we reiterate our request to hold a second peace conference in Madrid,” he said.

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Sánchez in New York (Sunday evening to late Wednesday):

On Monday, speaking at the UN, ‘President Sánchez called for a global tax on large fortunes, fairer taxation and the ethical use of Artificial Intelligence’ says La Razón here.

‘Sánchez brings his message of fighting bulos and fake news to the UN. Pedro Sánchez intends to bring the central message of his Democratic Action Plan to the UN to raise awareness of the need to confront hoaxes and disinformation. A fight that he believes strengthens democracies and combats extremism’. Item from LaSexta on Monday here.

‘"We are facing powerful adversaries, with significant sources of funding, who nurture networks of contacts on a global scale." The head of the Spanish government, Pedro Sánchez, together with the Brazilian Luiz Inacio Lula da Silva, led a sort of parallel summit to the UN General Assembly on Tuesday, focused on the threat of the extreme right in the world. The French president, Emmanuel Macron; the Chilean president, Gabriel Boric; the Canadian Prime Minister, Justin Trudeau and the president of the European Council, Charles Michel participated in the meeting called "In defence of democracy"’. El Periódico here.

‘The President of the Government, Pedro Sánchez, received the ‘He for She’ award from UN Women on Tuesday’. El Plural says the prize was due to be given by Anne Hathaway, but finally, she was unable to be present at the gala event.

…...

Gibraltar:

From El País (paywall) here: ‘The EU and London close the new round of negotiations on Gibraltar without an agreement but with “progress”. Spanish Foreign Minister José Manuel Albares and Executive Vice-President of the European Commission Maroš Šefčovič meet with the British Foreign Minister, David Lammy, for the first time since the Labour Party came to power in the United Kingdom’.

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Europe:

The Spanish media, once again impressed by British tabloid reporting: ‘'Move over, Spain': the UK forgets us and falls under the spell of this 'wonderful country' with cheap beer’. Where is this idyllic destination? Step forward Albania.

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Health:

The Olive Press has several articles (collected here) about the West Nile Virus, served to us by the mosquitos of south-west Spain. So far. Says El Mundo, eight people have died from exposure to the Fiebre del Nilo Occidental across Andalucía. The BBC has a feature on this bug under the disturbing title ‘The mosquito-bourne virus that's spreading without a cure’. It says, ‘…Now, there are growing concerns that West Nile outbreaks around the world will become more frequent due to climate change. Studies have shown that warmer temperatures can accelerate mosquito development, biting rates and viral incubation within a mosquito…’

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Corruption:

A major investigation into Alberto Núñez Feijoo’s activities while president of Galicia is revealed by El Plural here. ‘The former president of Galicia will have to answer for several issues at the request of the BNG. One of them is the one that has to do with the Álvaro Cunqueiro Hospital in Vigo, built with an extra cost of 470 million euros despite having 1,300 fewer beds, a smaller surface area than originally estimated and fewer parking spaces than promised, as explained by sources from the Bloque Nacionalista Galego, the BNG, in conversations with ElPlural.com.

‘Another point of the examination that the PP must undergo is the preferential treatment of Eulen, the company run by Micaela, sister of the current head of the main opposition party. In total, the company has signed 124 minor contracts with organisations that depend on the regional government for a value of more than one and a half million euros, just in 2024.

‘In addition to all this, there are the contracts that were signed during the pandemic with brands such as Sibucu 360 or the business with the telemarketing company of Feijóo's brother-in-law, Universal Support, which received at least 20 million euros spread over at least 44 covid contracts from the Xunta…’

Público also has a go here: ‘The Xunta de Galicia inflated the price of a contract that Feijóo's cousin gave to the company of the sister of the leader of the PP by 666,000 euros’.

From Gabriel Rufián (ERC spokesperson) regarding the now-retired judge who is claiming 120,000€ damages against Ione Belarra (leader of Podemos) for accusing him of being ‘corrupt’: ‘García-Castellón saved Cospedal from the Caso Kitchen, Esperanza Aguirre from the Caso Púnica, got Ignacio González out of prison, shelved the case against King Juan Carlos, could never figure out who was M.Rajoy, opened twenty different investigations into Podemos and accused Marta Rovira (Junts) of terrorism for being in a protest demonstration. Ione Belarra just says what she sees’.

The president of a ‘crypto-club’ called Madeira Invest Club abruptly closed down last week after failing to pay out its high-interest to investors has revealed to the Supreme Court that he gave Alvise Pérez 100,000€ in cash to help finance his leap to the European Parliament – in exchange for future favours says LaSexta here. An audio version is here. Alvise is (more or less) protected by his status as a member of the European Parliament.

Cyber-attackers have got into the Repsol computers says Xataka here. 

From Sur in English here: ‘Spain's DGT warns of new wave of 'outstanding traffic fine' text messages scam. Cybercriminals send victims a fake SMS message, pressuring them into action to avoid hefty surcharges’. No More Ransom is a useful Dutch project here.

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Courts:

The right-wing press were excited to obtain and reproduce the entire inquisition between the judge Peinado and the President of Spain Pedro Sánchez held at La Moncloa on July 30th. Here is the recording:

Judge Peinado: Will you declare against your wife Begoña Gómez?

The President of Spain: No.

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Media:

As the Government campaigns against fake news (or bulos) evident in certain quarters – both opposition news-sites and opposition politicians – an interesting example is found in the USA, as an obscure post on Facebook (later discredited) morphed into the Republican candidate for president and his second talk of eating cats and dogs in Springfield, Ohio. Who needs truth when you’ve got, uh, fiction? On the other hand (maybe), here’s Feijóo: "This is censorship and persecution of anyone who dares to criticize Sánchez. We haven't seen anything like this since Franco". Still and all, we shall continue to choose (and believe) the pronouncements of the media and politicians that coincide with our own views.

OkDiario, a webpage notorious for its creative news (and its heavy funding from conservative regional presidents) has a story called ‘Some of the items we wouldn’t have been able to run – if Sánchez’ censorship was a thing’.

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Ecology:

From Sur in English here: ‘Summers on the Costa del Sol are now up to 5C hotter than 50 years ago. In the 1970s and 80s, the average temperature for the months of June, July and August were around 23 to 24 degrees; in the 21st century, average temperatures of 26C are common and 27 degrees occasionally exceeded’.

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Various:

‘Why Olivenza is both in Extremadura and Spanish. The Treaty of Badajoz of 1801 signed by Spain and Portugal after the War of the Oranges (wiki) assigned that place to the Hispanic Kingdom as well as the next door village of Táliga, while other conquered Portuguese pueblos nearby were returned’. elDiario.es is emphatic (although, with the shoe on the other foot, no doubt Gibraltar is a very different kettle of fish). Wiki again: ‘Portugal considers Táliga, as well as neighbouring Olivenza, a de jure part of the Portuguese concelho of Olivença, occupied by Spain since 1801’.

How is Javier Tebas, the president of la Liga Nacional de Fútbol Profesional, the association responsible for administering Spain's two highest-tier professional football leagues, doing? Not bad, since he took the job in 2013, his annual compensation has risen from 348,000€ in 2013 to 750,000€ in 2016, then 3,440,000€ in 2020 and this year he takes home to mum the useful sum of 5,470,000€. Worth every penny.

El Huff Post brings us the laws regarding feeding feral cats and other creatures – The Animal Welfare Act says that municipalities must care for both lost and abandoned animals for their "collection and care", and thus, it’s down to the ayuntamiento. Madrid says ‘It is prohibited to provide food to stray or abandoned animals, as well as to any other animals when this may cause aggravation, damage or insalubrity’. Barcelona on the other hand: ‘It is not prohibited to feed animals in public places, but it is prohibited to leave the area dirty’. In the pueblos – no one appears to take much notice of the rules and they leave – if they have a mind to – the food out for the critters as they always did.

Spain's least-known language is in danger of extinction: there are only 500 speakers left who speak Erromintxela (wiki): a language characteristic of some of the gypsy people in the Basque Country, with a few speakers spread between France and Spain. Infobae says that it is a 600 year-old mixture of Basque and Romani. Not a language, not a dialect, but a pogadolect says the article (as must be Spanglish, I’m guessing).

Those Spaniards with a surname ending in –ez are probably descended from the Visigoths, says El Cronista here. ‘The Visigoths, a Germanic people who arrived in the Iberian Peninsula at the beginning of the 5th century while fleeing from the Huns, have left a deep mark on Spanish culture…’

As mentioned last week, Diego Ramos is the author of The Last Morisco (Amazon here), a fascinating if bloodthirsty historical novel set principally in Almería, Granada and Barcelona in the 1570s. It’s about the frustrated rebellion of the moriscos. Diego tells me he has a free copy in paperback for the first reader of BoT out of the hat who can tell us the difference between morisco and mozárabe. We’ll do the draw on Saturday. Email me fast!

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See Spain:

From Up a Mountain in Spain here ‘Pebbles and flooring in Spain’. A beautifully illustrated article.

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Letters:

Hi Lenox, At least the Spanish and Portuguese can have dual nationality unlike us Brits. A friend who took Spanish nationality had to hand over his British passport, with a tear in his eye. Some time later the British embassy sent it back to him by courier.

John

A letter to The Guardian (which I’ve pinched): ‘Why tourism has become such an issue for us Spaniards. Barcelona resident Manuel Arias says locals are being priced out of housing in many areas of the country as tourists and digital nomads are prioritised by landlords’.

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Finally:

I must admit to a fondness for the music of Rodrigo Cuevas, here with Tucucu.

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