Re: Re: Why Don’t Spain’s Gov’t Clean Their Act Up With Property

#107485
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Historically the Spanish are fairly useless at government. Then they had forty years of repression under Franco. The country then became regulation averse, seeing controls and close supervision as a threat to commerce and liberty.
It will take many generations before they truly understand where the balance lies between effective regulation and the emancipation of markets.

Investing in Spanish property has always been a risky business. For example the country only created a land registry when they entered the EU. The definitions between urban and rural land were always blurred and title amounted to whoever lived in the property.
Since Franco a property development gold rush started in Spain that has only just come to an end. It was easy to build anywhere with cheap land and materials. That kind of bonanza attracts all kinds of human being on the make.
Politicians as well as entrepreneurs suddenly realised they could become very rich. Why would they want to end it by passing laws, controls and mounting close supervision?

I do think now it’s all over things will slowly change, simply because confidence in the market has been shot to bits. Once confidence has gone, it takes a long time for anything to recover.

I agree also with Chopera in that Spain’s autonomous regions is a system of government which creates this very problem. Lack of regulation because central government will not intervene and create a possible constitutional crisis.