Spain To Make It Easier To Hire On Temporary Contracts

Spain's government Friday said it has approved a series of measures to make it easier for companies to hire workers on cheaper temporary contracts, the latest step to boost employment in an economy that has the highest jobless rate in the developed world.

The steps, which in particular seek to lower youth unemployment, include a controversial measure to allow companies to keep workers on temporary contracts on an indefinite basis, up to 2013. This removes limits on so-called "trash contracts" that were imposed in 2006.

In addition, the government said the measures will also open up special apprentice contracts to a larger number of workers, by changing and removing several limitations now in place.

Around 46% of job-seekers below the age of 25 in Spain are currently unemployed--more than twice the around 21% overall rate in the country.

"We have a national priority, which is to create jobs and fight unemployment," chief government spokesman Jose Blanco said in a press conference.

 

50-foot (15-meter) sperm whale died Friday after washing up on a beach in a resort in northern Spain.

50-foot (15-meter) sperm whale died Friday after washing up on a beach in a resort in northern Spain.
The whale was still alive when it was discovered early in the morning stranded on the sands of Zarautz town, but it soon died, said marine scientist Enrique Franco.
The cause of the whale's demise was not known, but Franco said: "It almost certainly came here to die. It's not uncommon for such animals to beach when they are very ill."
Despite its large size, the whale had not yet reached maturity, said Franco, vice president of the Society for the Study and Conservation of Marine Fauna in Spain's Bay of Biscay.
The challenge now will be finding a tug boat powerful enough to tow the carcass away from the beach, said Franco, so its bones can be preserved to study.
"These are big animals and this one could weigh more than 20 tons," the scientist said, adding that the whale's sheer size made it very difficult to lift it up for a full examination.
He said the carcass will be towed out to sea, then taken to the nearby port of Orio at high tide. There it will be buried in sand for about four years. At that point, the skeleton will be retrieved for scientific and teaching purposes.
By mid-afternoon Friday, a large crowd of tourists and residents had gathered on the beach in Zarautz to take photographs and watch the removal of the dead whale.

New forest fire breaks out in Murcia

As the forest fire continues to blaze in the south of Valencia, news comes of another between Cieza and Calasparra in Murcia which broke out on Tuesday night at 7pm.

More than 150 firemen and civil protection workers are currently fighting the flames, helped by a 100 soldiers from the UME emergency unit based in Valencia. The fire has so far affected between 250 and 300 hectares of bush and pine according to first estimates from forestry technicians.

Strong winds in the area are making the control of the fire difficult affecting the north and south faces of the sierra where two fronts remain active.

The emergency coordination centre has not ruled out the possibility that the fire could have been started deliberately because a second fire was noted in the Sierra del Puerto, just a few kilometres away just ten minutes later. That fire was quickly extinguished by the fire service.

 

Four people have been injured in another night of clashes between anti Pope demonstrators and pilgrims in the city for the Pontiff’s visit and World Youth Day, in the Puerta del Sol in Madrid.

The clashes were repeated as on Wednesday night despite a high police presence in the area. A young Italian woman, who was reported to be in the area by chance, is reported to be among the injured in the police charge.

Gay and lesbians collected to hold a ‘kiss in’ at 8pm on Thursday in the Plaza Vázquez de Mella in Chueca. The gathering, which was authorised y the Government Delegation, came in support of family diversity and to combat intolerance. Fundación Triñangulo said ‘The different family types are a rich part of our society and we are going to defend them’.

The Partido Popular has accused the Government of complacency for their response to the ‘problems’ during the anti-papal march on Wednesday, saying the route accepted was to blame for the situation. There were eight arrests and 11 injured on Wednesday night. However left wingers I.U. have accused the Government of marginalising the anti-papal protestors.

Another anti-papal march has been called for today, Friday leaving the Puerta del Sol for Atocha at 7pm.

Meanwhile Benedict XVI has, in his second speech


in the Plaza Cibeles, attacked those ‘who think they are gods and decide on who is dignified to live or can be sacrificed’, referring to abortion and euthanasia. He said it was a pleasure to be in the centre of the beautiful city of Madrid, ‘which is also capital for the youth of the world, and where all the Church has its attention placed’, he said. The Pope sent greetings in French, English, Italian, German, Portuguese and Polish.

The Pontiff has been acclaimed as he has passed through the streets of the capital and the Mayor, Alberto Ruiz-Gallardón, has awarded him with the Golden Key to the city.

Pope Benedict XVI arrived in Madrid at noon on Thursday for the World Youth Day which has attracted thousands of pilgrims to the city from across the world.

In his first speech, after touching down at Barajas Aiport in Madrid, he called for a respectful coexistence between ‘legitimate option’.

He was welcomed at the airport by King Juan Carlos, sporting a stick after his recent knee operation, and Queen Sofía. The monarch called for an end to the ‘intolerable youth unemployment’ in his speech. He called for youngsters to be given the means so they can start their way in life, and said that the youth of today was ‘frustrated’ by the lack of personal and labour horizons. The King thanked the Pope for what is his third visit to Spain.

The Pope responded to the King’s concerns by saying ‘The Youth is not alone’ and that World Youth Day brings a message of hope. The Pontiff also called for opportunities for the young, before setting off on a tour of the city on his Pope Mobile.
‘I have called for opportunities for the young in this time in which there is a deep crisis in values’. He continued that although there were matters for concern in Spain it was better to look towards overcoming them and called on youngsters ‘not to be ashamed of turning to the Lord’.

Also welcoming the Pope at the airport was the Cardinal Archbisop of Madrid, Rouco Varela. He said in his speech that he thought World Youth Day would result in 500,000 marriages and vocations, and said that Madrid had become a ‘universal home for the youth’.

The Pope will make a total of 12 speeches during his stay in Madrid.

Madrid is not a city to move in, with many central streets now closed to traffic and a 24 hour strike underway on the Metro.

Protestors have complained about the cost of the visit, but the organisers insist that it is not funded by the public purse. That said it has been revealed that the PP President of the Madrid region, Esperanza Aguirre, has given the order that pilgrims be exempt any medical charges during their visit. She has sent a circular to all the health centres in the region with the instruction.

Protestors also note that pilgrims get a discount on public transport, the free use of public space for accommodation, and the organisation has been granted an exemption of copyright charges for any music used.

The lay protestors who held a rally to Sol on Wednesday night were cleared from the square by a police charge, which resulted in six arrests and two policemen being injured. Today the protestors called a spontaneous protest in Sol against ‘police brutality’.

It has also been revealed that the Mexican who has been arrested for planning a chemical attack on the anti-Pope march is himself a member of the volunteers for World Youth Day. He told the court that his preparations were ‘a joke in bad taste’. He claimed that he had no intention of carrying it out. He was granted bail but ordered to register with the police twice a day.

Spain halves the IVA/VAT on new property until the end of the year.

The Spanish Government has announced it is to reduce the IVA/VAT on new property from 8% to 4% as an emergency measure in force until the end of the year. It comes in an attempt to reactivate the real estate sector, and only applies to new property. It means an average saving to the purchaser of about 8,000 €.

The real estate industry think the idea will help to reactivate a sector punished by the recession, but comment that it will also be necessary to give ‘better access to finance’. Other experts think it will have a limited effect coming as it does just 13 months after the Government increase the IVA/VAT rate on new property by 1%.

The Prime Minister will appear in Congress on Tuesday to explain the decision which was discussed in cabinet on Friday. The Government says that there is 700,000 empty new property for sale in Spain currently.
Despite the idea the Minister for Tax and the Economy, Elena Salgado, said the Government’s policy remained to try and stimulate the rental sector.

The Government hopes to save 5 billion € in the other measures discussed, including bringing forward the payment of company taxes on 3,900 companies which turn over more than 20 million € a year. The measure is intended to stay in place until 2013 and is designed to ensure the Government meets the 3% deficit target for the end of that year.

Also doctors are to prescribe the active ingredient in a medicine and not a brand name; a measure forecast to save 2.4 billion € a year. The idea has already been put into practice in Andalucía where savings this decade of 500 million have been made.


The Stock Market lost another 5.8% this week, after another ‘black week’ and a fall of 2.11% on Friday to take the IBEX 35 to 8,141.9.
Renewed concerns about a second recession and problems for the banks crossed the Atlantic from the United States to Europe. The EU idea of a Tobin Tax on financial transactions has not gone down well either. The IBEX has fallen 20% over the past year.
The risk premium between German and Spanish bonds ends the week at 286 points with an interest rate of 4.9%.
The volatility on the European markets was of especial note given the low volume of stocks being traded.

The Eurozone is reported to be considering taking over the running of the countries which break through the debt targets in what amounts to a ‘partial abandonment of budgetary sovereignty’.
The Belgian Finance Minister said that the Eurozone is planning for countries to finance 40% in Eurobonds, and 60% by themselves.

Self employed shopkeepers and small family businesses have seen their first slight recovery in sales in two years, but still face problems obtaining financing. Their associations have asked for zero tax on such businesses in small villages.

The Spanish Prime Minister met with the Pope on Friday to discuss the economic situation. José Luis Rodríguez Zapatero promised the Pontiff that he will ‘apply the adjustments adopted in Spain efficiently’.

 

Masked French farmers destroyed truckloads of Spanish fruit shipments in a row over imported produce.

Masked French farmers destroyed truckloads of Spanish fruit shipments in a row over imported produce.

They claim they are being forced out of business because Spanish growers can undercut their prices. They stopped trucks at Senas in Provence and flung out the cargo.

Trade union Vegetables of France claims Spanish farmers do not have to obey the same strict labour-cost and pesticide rules as the French.

Angelique Delahaye, the union's president, said: "We don't oppose the free market so long as rules are the same for everybody."

But Juan Corbalan, head of the Brussels office of Spanish cooperative AgriFruit, said the problems had been caused by early harvests in France

Two Britons, a man and a woman, have died after their car fell down a ravine

Two Britons, a man and a woman, have died after their car fell down a ravine, and a third person, a woman, was slightly injured. She informed the authorities of the accident but was also trapped in the vehicle until the fire service arrived from Cartagena.

A translator was needed on the 112 emergency services as the caller could not speak any Spanish. An ambulance from the SMS took her to the Torre Pacheco Health Centre. The health professionals confirmed the deaths of the man and the woman at the scene.

It happened on Monday evening on the road which runs between Fuente Álamo and La Aljorra, in an area known as La Manchica. The car fell down a drop of some 3 metres landing on its roof. First reports say that no other vehicle was involved in the accident.
It took the fire service for more than an hour to lift the car back onto the road.

Spain waves goodbye to prosperity

YOU HAVE to feel sorry for the Spanish. Since casting off decades of Franco's dictatorship in 1975, they have democratised, modernised, and generally worked extremely hard to create what looked until recently an enviable country. But what to many in ADVERTISEMENT

Scotland looked highly desirable - the decentralised political system and especially the tax autonomy enjoyed by the Basque country - now looks a severe handicap to Spanish attempts to right its struggling economy.

Over the weekend, the European Central Bank's decision to buy the bonds of the Spanish and Italian governments brought those countries back from the brink of having to default on their debts. It remains to be seen whether the move is enough to prevent the need to extend the bail-out loans given to Greece, Ireland, and Portugal to Spain and Italy. But for the moment a breathing space has been bought.

That this should have happened to Spain is all the more astonishing given that in 2007 it looked like a model economy. Spain had a balanced budget (unlike the deficit financing of most of Europe including the UK) and its total public debt, as a percentage of GDP, was only about half as large as that of Germany and less than half the size of Britain's national debt.

The big banks were sound and survived the financial crisis well enough for Banco Santander to become a vital rescuer of troubled British mortgage banks such as the Alliance and Leicester. Big companies, such as Iberdrola, purchaser of ScottishPower, were, and still are, major players on the European corporate stage.

On some pre-crisis forecasts, Spanish GDP per head, a measure of the wealth being produced by the average citizen, was set to surpass that of Germany's by the end of next year.

What went wrong was the recession that followed the financial crisis. Fuelled by cheap interest rates following adoption of the euro, and other Europeans' lust for a summer bolthole, the construction industry boomed. At its peak, it employed 14 per cent of the workforce (in Scotland, building employs about 6 per cent).

The recession, as in Ireland, brought building to a halt which has been a major factor in Spanish unemployment rising to just over 20 per cent. Government tax revenues, a high proportion of which came out of property also took a hit, throwing Spanish public finances into the red.

 

Spain's debt risk premium shot to another record high Wednesday

Spain's debt risk premium shot to another record high Wednesday, forcing the prime minister to interrupt his holiday for a crisis meeting on the market turmoil.
The premium demanded for buying Spanish 10-year bonds over safe-bet German bonds surged Wednesday morning to 407 basis points -- the highest since the introduction of the euro in 1999 -- before easing.
It was the second day in a row that investors had pushed the premium on Spanish government debt to a record high, fearing that Madrid's problems will only get worse as economic growth slows.
The dangerous new turn in the eurozone debt crisis threw Prime Minister Jose Luis Rodriguez Zapatero's holiday plans into disarray.
After delaying his departure to Donana, southern Spain, for several hours on Tuesday, he finally left late in the day but only to accompany his family. The same night, he returned to Madrid to deal with the crisis.
Zapatero later met with Finance Minister Elena Salgado and other senior government officials to "analyse the latest financial market movements," the prime minister's office said in a statement.
The Spanish leader made at least 10 telephone calls to discuss the market developments, his office said.
In a call to European Union President Herman Van Rompuy, the pair agreed that a new eurozone rescue plan for Greece must be implemented as soon as possible to soothe markets, it said.
Salgado said after the meeting that the market turmoil may continue for several days, blaming volatility that usually occurs in the months of August.
"The situation can last several days. We cannot rule out that the volatility will continue for a few days. We are being vigilant, and in contact with European authorities," she said.
"The volatility occurs in the months of August, when the market is thin. We must show the markets determination in reforms, assurance in the compliance with deficit (reduction) and an improvement of European governance."
The eurozone debt crisis has already claimed Greece, Ireland and Portugal, forcing them to seek bailouts from the European Union and International Monetary Fund.
There are growing fears the Italy and Spain, the eurozone's third- and fourth-biggest economies, could be next in line, developments that would dwarf previous bailouts and could undermine the euro itself.
The market turmoil strikes at a delicate time in Spanish politics and finances, with a government bond auction scheduled for Thursday to raise 2.5-3.5 billion euros ($3.6-5.0 billion).
The economic crisis led Zapatero on Friday to call general elections, in which he will not run, for November 20, four months early.
He is giving updates to his former deputy, Alfredo Perez Rubalcaba, who is now the ruling Socialist Party candidate for premier, and to the leader of the conservative opposition Popular Party, Mariano Rajoy.
The government will hold cabinet meetings on August 19 and 26 to decide new measures to battle the crisis, the premier's office said.
Moody's Investors Service warned Friday that it planned to downgrade the country's "Aa2" credit rating.
Spain, with an economy the size of those of Greece, Ireland and Portugal combined, says it should not be lumped together with the three lame ducks now under EU and IMF rescue programmes.
Madrid argues it has pursued tough reforms including raising the retirement age, relaxing collective bargaining rules, making it easier to hire and fire employees, cutting civil servant wages, forcing banks to bolster their balance sheets and placing assets such as the national lottery on the block for sale.

Spain's PM to meet finance minister over debt risk

Prime Minister Jose Luis Rodriguez Zapatero will meet Finance Minister Elena Salgado on Wednesday after the country's debt risk premium soared to a record high, his office said.
The meeting will "analyze the lastest financial market movements," the prime minister's office said in a statement.
Government spokesman Jose Blanco will also attend.
The premium demanded for buying Spanish 10-year bonds over safe-bet German bonds surged Wednesday morning to 407 basis points -- the highest since the introduction of the euro in 1999 -- before easing to 382 basis points.
Zapatero left with his family for a vacation in Donana, southern spain, late on Tuesday after postponing his departure for several hours to monitor the financial market turmoil.
He returned to Madrid soon afterwards however, leaving his family on holiday, and was in his office on Wednesday morning, his office said.