- This topic has 15 replies, 7 voices, and was last updated 11 years, 6 months ago by
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España logrará el mayor incremento de las exportaciones en el año 2013 entre los países de la eurozona, con una tasa del 4,2%, más de un punto porcentual por encima del dato del año precedente, según las previsiones que acaba de publicar la Comisión Europea, recogidas por el Instituto de Estudios Económicos (IEE).
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I applaud the encouraging news about Spanish exports, but think that Spain needs even more to get out of its current financial mess, caused by high unemployment and an overblown property market – it needs to devalue its currency. Help may be at hand from the obvious place, Germany:
It was only a matter of time before the Eurosceptics made their move in Germany, they’ve been acting as paymasters for the rest of Europe for far too long, especially the southern states. The new party’s aims reflect the overall German taxpayers view – yes, we want to stay in the EU but the current Euro currency doesn’t work, it needs revising. Not necessarily to return to the Deutschmark, even a splitting of the Euro into a north/south category would do the trick.
Spain would have a new currency, not necessarily the Peseta, and a 40% devaluation would follow. It’s exactly what the country needs. It’s exports would rise even further, the tourist trade would go through the roof, and the empty houses would be snapped up by the northern Europeans.
Spain is a vast and empty country within Europe, there would be ample scope to restart the building and get the country working again, perhaps with a few lessons learned form the past.
(And the pound Sterling would go up).
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(And the pound Sterling would go up).
There can’t be many of us here who wouldn’t like to see the pound regain some purchasing power.
Although if you are selling your Spanish house, and are lucky enough to find a buyer (perhaps a Russian or Scandi) then the current strength of the Euro will be an advantage when changing your proceeds back to sterling. -
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@Rocker wrote:
You’ve missed the most obvious Marcos. All of us expats living in Spain and relying on an English income would benefit from the pound rising. And all of us would like Spain to prosper again because we love the place.
Perhaps I wasn’t direct enough, but I included expats relying on a UK income when I said “There can’t be many of us here who wouldn’t like to see the pound regain some purchasing power.”
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@Rocker wrote:
I applaud the encouraging news about Spanish exports, but think that Spain needs even more to get out of its current financial mess, caused by high unemployment and an overblown property market – it needs to devalue its currency. Help may be at hand from the obvious place, Germany:
It was only a matter of time before the Eurosceptics made their move in Germany, they’ve been acting as paymasters for the rest of Europe for far too long, especially the southern states. The new party’s aims reflect the overall German taxpayers view – yes, we want to stay in the EU but the current Euro currency doesn’t work, it needs revising. Not necessarily to return to the Deutschmark, even a splitting of the Euro into a north/south category would do the trick.
Spain would have a new currency, not necessarily the Peseta, and a 40% devaluation would follow. It’s exactly what the country needs. It’s exports would rise even further, the tourist trade would go through the roof, and the empty houses would be snapped up by the northern Europeans.
Spain is a vast and empty country within Europe, there would be ample scope to restart the building and get the country working again, perhaps with a few lessons learned form the past.
(And the pound Sterling would go up).
So you agree with the Eurosceptics then?
And you think the solution to Spain’s problems is to build more houses?
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In answer to your questions, simply put, I would have to answer Yes and No, twice.
Spain needs to devalue its currency, it can’t compete with German levels, it has an entirely different system.
About building more houses, daft as it sounds. Spain is 4.5 times bigger than the UK in its surface area, and has a much smaller population. It therefore has room to grow and needs more people, perhaps I should say the ‘right’ kind of people to grow.
When I say build more houses, I should say ‘legal’ ones after a quick glance at Mark’s latest post.
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I don’t know if eCommerce gets included as exports – doesn’t it all get reported in somewhere like Ireland to avoid paying tax? Anyway, Inditex are beginning to soar in terms of web sales, not just physical stores. They’ve doubled their online sales in a year. $0 to $450MM to $800MM online for Zara.
http://www.businessoffashion.com/2013/03/inditex-online-sales-soar.html
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@Rocker wrote:
In answer to your questions, simply put, I would have to answer Yes and No, twice.
Spain needs to devalue its currency, it can’t compete with German levels, it has an entirely different system.
About building more houses, daft as it sounds. Spain is 4.5 times bigger than the UK in its surface area, and has a much smaller population. It therefore has room to grow and needs more people, perhaps I should say the ‘right’ kind of people to grow.
When I say build more houses, I should say ‘legal’ ones after a quick glance at Mark’s latest post.
Spain has got the people. The problem is that Spanish companies are unable to recruit them, so they waste away on the “paro” (or emigrate).
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@Chopera: and why do you think they are unable to recruit ?? and more why cant they train these people.
The majority of them get the job through contact’s and some of them have never worked or even spend a day going through induction or knowing the basic of the product/service industry that they find them themselves working in.
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@Rocker wrote:
Spain would have a new currency, not necessarily the Peseta, and a 40% devaluation would follow. It’s exactly what the country needs. It’s exports would rise even further, the tourist trade would go through the roof, and the empty houses would be snapped up by the northern Europeans.
Nice theory, but it won’t work in practice because you assume everything will drop with the devalued currency – it won’t it will rise to match it. Example:
A house is on the market now for €100k. In sterling that would be say (£100k / €1.10) = £90k. The Spanish currency gets devalued by 40% to lets say Southern Euros (SE) £1 now equals SE€ 1.55, that house should now be £90k / SE€1.55 = £58k, but it won’t be it will be SE€139k (SE€139k / 1.55) = £90k.
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@peterhun wrote:
UK population is 60million
That’s a bit of a conservative estimate.
At the previous census (10 years ago) it was 63m, at the last one I think 65m which is still about 10-15 million less than the likely real population figure of 75-80 million. I pay very little attention to official government figures because I know how manipulated they are, I’m much more interested in what the supermarkets say on the basis of their figures and they estimate it at about 75m.
I know lots of people who didn’t bother filling that census form in and there must be millions who have a very good reason for not being on it.
75-80m is nearly double that of Spain in an area half the size.
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