At least Spain’s Finance minister Pedro Solbes is being honest enough to finally refer to it as “Spain’s home-grown housing crisis”.
He then spoils it all by saying “…….the property boom had degenerated into a “bubble” but there was little the government could reasonably do about it. What was the state supposed to do? Stop people building houses? That wouldn’t be reasonable”.
What is reasonable is to expect the regional governments to have ensured the strict building laws were adhered to instead of busily lining their pockets. Safeguards like the PGOU’s, requirement of legally approved building licences before the diggers moved in (as against the bribed-whim of the local mayors), heavy fines imposed for developers building where they shouldn’t etc. were all in place but were ignored and taxes happily stashed in the State’s pot.
Don’t cry ‘it wasn’t our fault’ now, no-one buys it.
As for the banks – they deserve all they get. In my opinion they have been as much involved in all the corruption/recklessness as anyone and their chickens are now coming home to roost. A list of those most at risk of insolvency? That would make interesting reading if anyone’s got one.