April 10, 2013 at 12:36 pm #57400
The economic crisis in Spain continues. Data released this morning showed that industrial production in the country tumbled by 6.5% in February, compared with a year ago.
That’s the 18th monthly contraction in a row.
The slump was driven by a double-digit decline in production of durable goods for consumers, who are suffering badly as Madrid implements its austerity programme.
But production was also down across the board, from other consumer goods to large-scale industrial equipment:
April 11, 2013 at 9:27 am #93494
Ollie Rehn the EU commissioner for economic affairs warned Spain yesterday the state of their economy is causing alarm in Brussels and it needs an urgent fix.
I realise these reports on the state of Spain causes little excitement on the forum but it’s building into a real catastrophe for the country and relevant to the state of the housing market.
April 11, 2013 at 9:44 am #93496
It was interesting to note that not only did industrial output fall in Spain but also in Italy too and it’s the combination of both country’s output that is spooking Brussels 🙄
The good news is that industrial output rose in France though 😉
April 11, 2013 at 9:50 am #93497
Not that industry is the be-all of the Spanish economy, but some brighter news here: ANFAC the auto manufacturer’s group states 3 billion of new investment assured with another billion very likely.
April 11, 2013 at 9:51 am #93498
What you can be sure of that the warnings by Ollie Rhen given to the Spanish government in private will be much severe than the public statements.
Something like reform your economy or else. 🙁
April 11, 2013 at 3:10 pm #92322
April 11, 2013 at 3:50 pm #92323
It’s true excessive confiscatory taxes are killing France. There is now a bed tax for tourists of €0.75 per head per night. Taxes are everywhere, food, fuel, clothes. The only free stuff is fresh air.
Yet social spending is soaring and the unemployed and they who don’t want to work have a very comfortable life.
April 11, 2013 at 9:37 pm #91634
ZK I was only quoting from the same article about industrial output of Spain and Italy falling but it then went on to say that France’s had risen, it wasn’t referring to the property market which I agree is falling due to taxes etc. 🙄
Incidentally a house near us in the UK on the market for £1.25 million owned by a Swedish couple probably sold for about £1 million, to guess who, a French couple who’ve decided to quit France, and there’s certainly a lot more French interest in UK property in London and the South of England it seems ❗
April 12, 2013 at 6:26 am #91626
Many, many qualified and intelligent young French people are leaving the country on mass. There are no opportunities in the country. Extreme left-wing socialism is destroying the post war consensus where social responsibilities were tempered and balanced with controlled capitalism.
Sarkozy tried and failed to liberalise that balance in favour of the free market but the French didn’t like it and failed to understand it.
It sounds hard to believe but the French don’t really understand competition or free market economics. They have been protected from it for so long. Cradle to Grave was not just a political slogan. In France it means everything to the ordinary Frenchman who expects the state to take care of their every need.
France is a wonderful country in which to live but the burden of taxation and state bureaucracy is oppressive. The country is now stuck with an over promoted hopeless President, trying to learn on the job. He only got there because DSK couldn’t keep his trousers fastened. The future is dismal indeed.
April 12, 2013 at 8:26 am #91604
down here in Marbella the French are now everywhere!!!; buying loads of houses, and they seem to be living here full time as well. Also, noticed many French (affluent looking) in other coastal areas; Costa Blanca, Almeria etc. As there is no exodus count it is impossible to put a number on the escapees. Hollande is awful!!, a champagne socialist if ever there was one!!
April 12, 2013 at 9:47 am #91596
Ubeda, as you know the CDS very well, have you any figures supporting your comment that the French are ‘buying loads of houses’ there? What sort of numbers are we talking? Also, does this mean they have managed to sell their existing French homes despite that difficult market or are they keeping them whilst spending their savings? 🙄
April 12, 2013 at 10:57 am #91589
Don’t ask…he makes it up as he goes along. If we were to believe him there wouldn’t be any properties left for sale and they would be going for more than the asking price, like the UK South East.
Ubeda is always on about Zagaleta…nearly all of it has been on sale for years 😆 😆
April 12, 2013 at 12:10 pm #91583
Shouldn’t be too difficult for Ubeda to post a link to the evidence then? 😉
Rising numbers of French tourists to Spain shouldn’t be mistaken for French property buyers 🙄
April 12, 2013 at 12:39 pm #91585
I’m not Ubeda but I posted a thread pointing out that house sales are up compared to last year.
So for instance last year, in March 25,464 homes were sold, 25,405 in June, and 25,261 were sold in October, so far this year there have been house sales in the quantity of 39,670 in January and 35,486 in February. It won’t be enough to get rid of the over-supply (they’ll have to progress their social housing plan to do that) but it does confirm sales are up compared to last year. Yes, it’s being claimed that a lot of sales are December contracts being finalised, but that just proves there are sales!
It’ll be interesting to see if the March and April figures fall back to the typical 25k of last year?
April 12, 2013 at 12:57 pm #91581
I read that report in El Pais. It also said that there were so many thousand that were inheritences, a few thousand swops. It wasn’t clear to me if these were included or not 😕 Some Spanish says it includes foreclosures 😕
I am a bit bemused by it seeing as the number of mortgages taken out fell to it’s lowest level ever. Even the British were using the equity in their house and taking out a spanish mortgage during the good years.
April 12, 2013 at 2:37 pm #91570
We appreciate you’re not Ubeda, Marcus, and, also that this thread unfortunately went off topic a while back. 🙄
Quite happy for Ubeda to post links or facts to the French buying ‘loads of properties on the CDS’ on a property topic, but I can’t find any yet despite looking.
Out of interest the French are reported to be buying in UK, London in particular, and I believe the top rate of tax in the UK may be 11% lower than in Spain now which makes sense for the interest in UK from them 🙄
I think house sales in Spain are probably up although from a low base and in particular to EU nationals without exchange rate differentials, but as you say, not enough to get rid of over-supply, but one reason might have been to beat the rise in tax on new homes which came into force this year 🙄
April 12, 2013 at 4:53 pm #91559
Getting back to the topic of industrial production falling…it doesn’t fit with the news that exports are breaking records does it. 😕 What are they selling abroad, tomatoes and Aubergines?
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