Spain's Unicaja, Caja Espana savings banks merge

Spanish regional savings banks Unicaja and Caja Espana have merged following the government's recent requirement that banks raise substantially their provisions set aside to cover toxic real estate exposure. The merger, in which Banco Caja Espana-Duero (Banco Ceiss) is effectively absorbed into Unicaja Banco, creates a group with approximately (EURO)80 billion ($104.9 billion) in total assets and a turnover of (EURO)120 billion ($157.4 billion), according to a joint statement released late Friday. The deal must first receive Finance Ministry and central bank approval and would require (EURO)850 million ($1114.86 million) of state aid, which is added to (EURO)525 million ($688.59 million) already injected into Caja Espana in 2010 by the Bank of Spain's restructuring fund (FROB).

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German taxpayer would be obliged to subsidise the wages of Lionel Messi and Cristiano Ronaldo.

 

When faced with the prospect of the Spanish government waiving the collective €752m debt the nation's football clubs owe to the country's tax authorities, the reaction in Europe last week was one of outrage. The German tabloid Bild even asked how long the German taxpayer would be obliged to subsidise the wages of Lionel Messi and Cristiano Ronaldo. What they meant was that while the European Union members bailed out the Spanish economy, successful Spanish clubs were failing to meet their own tax obligations. Strictly speaking, Real Madrid have no tax debt among the €170m debt that the club carry, but Barcelona owe €48m of their overall €364m debt to the Spanish taxman. Uli Hoeness, the outspoken president of Bayern Munich, got to the point rather more quickly when asked about the proposal to excuse Spanish clubs their tax debt. "This is unthinkable," he said. "We pay them hundreds of millions to get them out the shit and then the clubs don't pay their debts." It is a uniquely modern European dilemma, encompassing EU bail-out funds and the competitiveness of the continent's respective leading clubs, all of which ultimately adds another fiendishly complex element to the concept of Financial Fair Play, as proposed by Uefa president Michel Platini. It is further proof that while Spanish football is undoubtedly top dog in Europe, with five teams in the quarter-finals of the two Uefa competitions, it is not without problems. As The Independent's Pete Jenson reported in these pages on Saturday, a government report in Spain last week disclosed that the equivalent of £625m is owed by Spanish clubs to the country's public purse, with £353m of that due from 14 of the 20 clubs in the top division. This is not money owed to banks, investors or owners. It is owed to the Spanish people. On a sporting level it is "financial doping" at its very worse. On a social level it is nothing short of a disgrace in a country where youth unemployment currently runs at 50 per cent. Not all top Spanish clubs are culpable and it was reassuring to read in the breakdown of club debt by AS newspaper that Athletic Bilbao, the team of largely home-grown Basque stars who left English football spellbound with their schooling of Manchester United last week, do not owe the taxman a cent. So too Real Sociedad, Getafe, Villarreal and Sporting Gijon. On the other hand, Atletico Madrid, currently eighth in La Liga and drawn against Hannover 96 in the quarter-finals of the Europa League, owe the Spanish public purse €155m (£128m), more than any other club. The money from the €50m sale of Sergio Aguero to Manchester City last summer went straight to the tax authorities. Valencia, who play AZ Alkmaar in the same stage of the competition, owe €6m in unpaid tax. When Hoeness expressed German football's bitterness that their government is, indirectly, subsidising the success of Spanish clubs it is the likes of Hannover he was talking about. Atletico's big signing was Falcao from Porto last summer, a £33m signing financed by third-party ownership deals. Hannover bought Mame Biram Diouf from Manchester United. Enough said. No one would pretend that British football is the perfect financial model, especially given Rangers' and Portsmouth's debts to HMRC. Even the Germans have had their problems with Borussia Dortmund and Schalke. But unpaid taxes at a time when public services are being cut and jobs lost are particularly repugnant. Real Betis, Real Zaragoza, Racing Santander, Levante and Mallorca (denied a place in last season's Europa League because of their finances) owe a total of €118m to the Spanish tax authorities between them. There are also suggestions that unpaid social security contributions by some Spanish clubs rival those eye-watering figures for unpaid tax. In the past, Spanish football has been protected by the assumption that punishing badly-run clubs would cause such a backlash against government by voters that it would not be politically expedient. There is no points penalty in Spain for going into the equivalent of financial administration as there is in England. But attitudes are changing. The governing political group Partido Popular has described the situation as "intolerable". The government was forced to disclose the figures of unpaid tax because of an official request by Caridad Garcia of the Izquierda Unida (IU) party. A spokesman for IU, José Luis Centella, made the connection last week between the financial hardship felt by the Spanish people and the clubs' failure to pay. "This is bad news for all the people who have lost homes and suffered from the cutbacks while there is this tremendous generosity towards football." Wisely, the Spanish sports minister Miguel Cardenal announced last week that the government had dropped any consideration of giving football clubs a clean slate on their tax debts. There has even been a call from the centre-left party PSOE to ban clubs with tax debts from competing in the league, a rule that, already in place in Italian football, would change the face of La Liga overnight. Were the Spanish tax authorities to call in their debts tomorrow, Barcelona would surely be able to find, or borrow, the €48m they owe. Atletico, on the other hand, would find themselves in the kind of dire situation currently enveloping Rangers. There is a lesson for English football that in the risky game of investment and borrowing that most clubs enter as they attempt to fulfil the ambitions of supporters and owners, there are certain obligations that are non-negotiable. Football clubs command such loyalty and affection that they are too often cut slack, but, as the situation in Spain is starting to show, there is always a limit. Ridicule of Richards the last straw Down the years, Sir Dave Richards has given every appearance of being invulnerable to criticism or error of judgement. He has survived adversaries in the Football Association such as Lord Triesman and Ian Watmore in recent years. The financial problems of Sheffield Wednesday, where he was chairman, do not seem to have had an impact on his reputation. He walked out on the 2018 World Cup bid in a huff and it all blew over. Which makes it all the more incredible that an ornamental fountain, and a slightly unhinged but largely irrelevant speech on football, should prove his undoing. It just goes to shows that a divisive figure in football administration can survive a great deal but once their mistakes start to make people laugh – it's over. Will City seize their chance to get Mourinho? When Manchester City meet Chelsea on Wednesday, the shadow of one man falls over both clubs. Jose Mourinho is the last card that the most ambitious football club owners can play. If all else fails, then give Mourinho the job and if that does not bring success then you really are out of options. In Spain, the mood is that Mourinho may stay at Real Madrid in the penultimate year of his contract next season or he may go back to England if the right job presents itself. Is that Chelsea or could it be City? If Roberto Mancini fails to win the title this season and Mourinho is willing to come then it places an idea in the heads of City's owners. It is not as if he is available every summer.

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S SPAIN THE NEXT GREECE? NATION SINKS FURTHER INTO MIRE

Savage cuts to the Greek health service have seen the country's HIV and Tuberculosis rates soar - sparking fears it is becoming a third world nation.

Aid agencies said the cutting of hospital budgets by an astonishing 40 per cent had also led to a sharp rise in the number of citizens being diagnosed with Malaria.

In the south, they said, it is reaching near endemic levels not seen since 1970s.

The scrapping of needle exchange services has seen the number of HIV and Aids sufferers in central Athens rise by 1,250 per cent in 2011 alone.

There are more prostitutes on the streets selling their bodies to make ends meet, while heroin addicts are finding it harder to come by anti-retroviral treatments.

There is also the first instances ever of the two illnesses being transmitted between mother and child - something usually equated with sub-Saharan Africa and not Europe.

Médecins sans Frontières Greece's Reveka Papadopoulos said the health service cuts, which saw widespread job losses, were putting social services 'under very severe strain'.

She added: 'If not in a state of breakdown. What we are seeing are very clear indicators of a system that cannot cope'. She said the 40 per cent cuts were on top of a 24 per cent increase in 2011 in demand for medical services.

This, she said, was 'largely because people could simply no longer afford private healthcare. The entire system is deteriorating'.

On the rise: The number of HIV and Aids sufferers in Greece is soaring

 

She added: 'There has also been a sharp increase in cases of tuberculosis in the immigrant population.

'Cases of Nile fever - leading to 35 deaths in 2010 - and the reappearance of endemic malaria in several parts of Greece.

 

 

 

'The simple fact of the reappearance of malaria, with 100-odd cases in southern Greece last year and 20 to 30 more elsewhere, shows barriers to healthcare access have risen.

'Malaria is treatable, it shouldn't spread if the system is working.'

Good news: Greece is set to receive the next tranche of eurozone bailout cash next week

The news comes as it was revealed Greece will get €5.9billion in new bailout money on Monday. It is the first slice of a new rescue package meant to keep the country afloat while it overhauls its economy.

Greece stands to receive a total of €172.7 billion from its partners in the 17-nation eurozone and the International Monetary Fund until 2016.

IS SPAIN THE NEXT GREECE? NATION SINKS FURTHER INTO MIRE

Spain now owes more money than it has done in the last 20 years, the Bank of Spain said.

For 2011 the country's public debt was 68.5 percent of gross domestic product, up from 61.2 per cent in 2010.

While it is a relatively low ratio, compared with its 16 eurozone peers who have an average 87.7 per cent, it has almost doubled from 36.3 per cent in 2007.

This is because there is a lack of economic impetus since the credit-and-construction bubble burst in 2008.

Spain has been ordered by the European Commission to cut its budget shortfall from 8.5 per cent of GDP in 2011 to 5.3 per cent this year and 3 per cent in 2013.

It has forced Prime Minister Mariano Rajoy to hunt for savings worth around €60billion.

This year's target is a compromise after Rajoy defied Brussels by ditching a much tighter goal of 4.4 per cent of GDP agreed by the previous government.     

But the task will be made tougher as the economy is thought to already be in its second recession in three years, with the government expecting output to shrink 1.7 per cent in 2012.

The cuts has led to the closure of 27 publicly run companies, some of which were duplicates - such as a water company.

Others included a loss-making entity tasked with stimulating Spain's small housing rental market and one created to back the Barcelona Olympics in 1992.    

The central bank also said Spain's 17 autonomous regions, blamed for the lion's share of the fiscal slippage last year, ran debt up by 17.3 per cent in 2011 to €140billion.

The data showed the country's wealthiest region of Catalonia, was the most indebted, closely followed by Valencia.  Both had debt-to-GDP ratios of around 20 per cent compared to an average of 13.1 per cent.    

Tighter controls over regional budgets imposed by the central government aim to bring their spending back under control this year, even if analysts retain doubts over their future compliance and banks' balance sheets.    

The sum includes money left over from the country's first rescue package and a new €130billion programme.

The disbursement was approved earlier this week, said Matthias Mors, the European Commission representative to the troika - the debt inspectors from the European Union, the European Central Bank and the IMF who are managing the Greek bailout.

The bailout, on its own, will not be enough to ease the country's financial woes.

An EU report released today said Greece must make a sustained effort to attract future investment and support export-led growth as it seeks to recover from a recession that is now in its fifth year.

But the report, prepared by the European Commission and the ECB, also said a bond swap deal with private creditors has made the country's debt load far more sustainable in the long-term.

The news has had a positive effect on European financial markets.

The FTSE 100 is today 0.45 per cent up at 5,967.43; France's CAC 40 is 0.54 per cent up at 3,599.37; and Germany's DAX is 0.33 per cent up at 7,168.37.

The report projects that, assuming interim targets are met, Greece's debt-to-GDP ratio will decline to below 117 per cent in 2020 and to below 90 per cent in 2030.

It was as high as 160 per cent of GDP before the debt relief deal was agreed with private creditors.

While progress has been made in reforming the economy, significant concerns remain, including inflation, a lack of credit available to households and business, and the need to regain competitiveness by reducing labor costs, Mors said.

'One of the priorities of this second program is the recapitalization of banks,' Mors said.

For one thing, bank deposits have fallen, he said. For another, the agreement to write down private debt 'will leave holes in the balance sheets of banks, because they held government bonds,' he added.

He said the new program includes €50 billion for bank recapitalisation. 'This is an enormous amount,' he said. Mors also warned that significant more belt-tightening lies ahead.

'The target for this year is a primary deficit of 1 per cent,' he said, referring to the budget balance before interest payments. 

'And the programme target for 2014 is a surplus of 4.5 per cent. And therefore people have to be aware that, in terms of fiscal adjustment, there's still a long way to go.' He said the Greek government will have to identify before this summer how it plans to close that gap.

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Health board owed £130k for treatment of foreign nationals

FOREIGN nationals not entitled to free treatment are said to owe Swansea Bay's ABM University Health Board more than £130,000 — the second highest figure in Wales. According to figures obtained by the Welsh Conservatives, only Cardiff and Vale UHB is owed more, at just over £200,000. ​ Darren Millar AM The Welsh Government has now said it is looking at further measures to help health boards recoup their costs. Figures obtained by the Tories following a Freedom of Information request show the money owed to the NHS in Wales more than doubled between 2008 and 2011. Of the £380,000 that was unpaid, at least £199,311 is still outstanding to Wales's seven health boards, while a minimum of £185,700 was written off after bosses exhausted efforts to be reimbursed. Shadow Health Minister Darren Millar AM expressed concern at the figures, arguing the Welsh NHS was in no position to be owing substantial sums of money. He said: "There are strict guidelines in place for explaining details of charges to patients who are required to pay. "The Welsh Government should look carefully at how well these rules are followed. "Any money written off by the NHS is regrettable when budgets are being squeezed so hard. The big rise evident in these figures is of great concern." The figures show that, in 2008/09, £70,815 had not been paid back. In 2010/11 that had increased to £257,713. And the Tories also claim there was been a downward trend in the rate of collecting money owed, down from 71 per cent in 2008/09 to 43 per cent in 2010/11. Some treatments, such as medical emergencies at A&E or compulsory psychiatric care, remain free of charge for everyone in Wales — regardless of where they are from or how long they have lived in the country. Other procedures, which include non-life-threatening outpatient care, are supposed to be paid for by non-EU residents. But the process and guidelines are far from straightforward as some countries have signed healthcare agreements with the UK. This makes its citizens exempt from some charges. ABM officials could not be contacted for comment. A Welsh Government spokesman said: "All visitors to Wales requiring NHS treatment are assessed as to their eligibility for free NHS treatment. "All treatment received in an accident and emergency department is free to all. "We have issued clear guidance to NHS organisations which states that they should recover the cost of caring for overseas patients who are not entitled to free care. "We are looking at what further measures can be introduced to support NHS organisations recover costs."

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Spanish state will need outside help – or even go bankrupt.

 

If the negative development in the Spanish housing market continues, it can – worst case – lead to renewed concern over that the Spanish state will need outside help – or even go bankrupt. Banks might face several hundred billion Euros in losses on the Spanish real estate market. This will mean a recapitalization of the Spanish banks – capital that can only come from the Spanish state. Now there is nothing new in that; but what is interesting is the free admission of a need to nationalize the Spanish banks. If you glace at the graph you will see the Danish housing market has dropped between 22% and 30% from the top – time and actual drop depending on market segment. As Danske Bank is roughly half the Danish finance sector it is hard to escape the conclusion that Danske Bank is in at least as big trouble as the banks in one of the more notorious frivolous and irresponsible economies in Europe. Danske Bank will presumably peg their flag to the difference in unemployment figure (Spain hovers around 20%). True as that may be; but unemployment figures are notoriously difficult to compare between countries. Not only do criteria differ; but the criteria differs over time – according to political convenience. It is kind of discussing distress on board the Titanic: “It’s only your end that is under water! I’m fine!!” That is the nearest to a Freudian slip admission of life threatening financial distress we can expect from Danske Bank. But it is time to bust a few myths before they come too much of age – and be established as “truths” – and draw some conclusions. 1)    Looking at the graph again prices on condominiums/flats/apartments had begun to drop way before the collapse of Lehman Brothers. Two years in fact. That was more due to a temporary rise in interest rates that made the calculations of monthly payments  – even to the least lunatic bank manager – clearly unrealistic. 2)    Generally sales were falling from mid 2007 – I trust the reader is can see through the regular seasonal variation to distinguish the trend. 3)    The collapse of Lehman Brothers and the perhaps inept handling of the resulting Credit Default Swap disaster had indeed nothing to do with the much deeper issue of banking irresponsibility and incompetence. Alan Greenspan has been quoted for saying that what surprised him was that banks had not taken preventive measures in their own interest. The forces of the free market self-regulating controls do NOT apply in the financial sector. 4)    The next major meltdown – which clearly is underway (Spain will not be able to meet the budget target agreed upon by Rajoy) – will in essence have nothing to do with the Greek debacle. Greece was/is – all things considered – handled more effectively than the collapse of Lehman Brother. To be fair: There was more advance warning and the cacophony of idiotic optimism had been quenched by German lack of sentimentality. 5)    You can see the lack of linkage to the Greek situation by the fact that the Danish and Spanish drop in housing prices (and lack of trade) is simultaneous. Danish banks were not exposed to Greek sovereign debt to ANY appreciable extend. Furthermore Denmark has a reasonably healthy export which is more than can be said about Spain. Still a near similar and at least simultaneous price drop in Denmark and Spain points to a factor nobody has wished to mention: The banks of both countries are to all intents and purposes deceased and with no future without state ownership.

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Spain has been surprised at the magnitude of this property down slide. thinking thought it would be around 10 percent.

Home-owners in Spain received yet another blow when figures released by the National Statistics Institute (INE) show that house prices fell even further in the last quarter of 2011.

House prices in Spain have been in free-fall since the start of the economic crisis with the construction industry coming to a virtual standstill. The figures show that the price of new build properties dropped by 8.5 percent in the final quarter of 2011 compared to The equivalent period in 2010. Those trying to sell their used homes are suffering even further with a drop of 13.7 percent.Analysts are blaming the recession, unemployment and uncertainty about Spain's economy as major factors, according to a report in El Pais. Property expert Julio Gil said:

“We have been surprised at the magnitude of this down slide. We thought it would be around 10 percent.”

With more and more people defaulting on their mortgages, the banks are being left with huge stockpiles of homes that they can't sell, even at knock-down prices, whilst the immigrants from Northern European countries that helped create the property boom in Spain have all but disappeared. This is the worst quarterly drop since the INE started recording the statistic, with Madrid the worst affected region.

Stop Desahucios

Logo of action group aiming to help families facing eviction.

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The Wall Street Journal reports that Spanish banks now hold "more than €400 billion worth of loans to the construction and real estate sector, " an amount that is equivalent to 40 percent of gross domestic product for Spain. Early figures show that the price drop is continuing in this first quarter of 2012.The personal tragedies behind the stark figures are very sad. An action group, called 'Stop Desahucios', has been formed to try and stop people being forcibly evicted from their homes. With unemployment rising at an alarming rate, many more people are finding themselves unable to pay their mortgages and discover that the banks are less than sympathetic to their plight, despite the fact the banks are overloaded with properties they can't sell. The action group try everything to help the families and if that fails they literally stand in front of the homes preventing officials from getting in to evict the families, many of whom have small children.Many foreigners with homes in Spain, whether permanent or holiday, just hand in the keys to the bank and head home leaving huge debts behind them.What is certain is that property prices in Spain will continue to spiral downwards and it will be some years before the property market begins to recove

Read more: http://www.digitaljournal.com/article/321327#ixzz1pOewnM7S

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Prosecutors charge Catholic nun in alleged stolen baby scheme at Madrid hospitals

A Catholic nun has been charged with being part of a child stealing operation that ran over four decades in Spain. Sister María Gómez Valbuena is the first person to be indicted in connection with the probe into more than 100 cases of babies snatched from hospitals between the 1950s and 1980s. She was subpoenaed to testify before investigators recently but refused to answer questions, according to sources at the Madrid prosecutor's office. Identity crisis: Randy Ryder as a baby being cradled in a Malaga hospital in 1971 by the woman who bought him Her name has surfaced in dozens of complaints filed by mothers who claim they were robbed of their babies after giving birth at San Ramón and Santa Cristina hospitals in Madrid. Sister María was the assistant to Dr Eduardo Vela Vela, whose name also appears in the complaints filed by mothers. Prosecutors have decided that there is sufficient evidence to file charges against Sister María in one case, based on a woman's testimony that her daughter was taken from her in 1982 after she gave birth at the Santa Cristina Hospital.   More... The doctor who broke up families: Psychiatrist who damned hundreds as 'unfit parents' faces GMC probe Is legend of St Patrick just a bit of blarney? He was a runaway tax collector turned slave trader, says expert The woman, identified as María Luisa, states that she was told that her baby had died at birth but claims she was actually given to another family. Shortly after giving birth, María Luisa saw an ad published in a magazine taken out by a nun — Sister María Gómez Valbuena — who offered her services to help single mothers. María Luisa was separated at the time and had another daughter. When she went to see her, María Luisa discovered that the nun was actually offering to take her daughter away to give to a family. Reunited: Randy Ryder with Manoli Pagador, who believes she may be his real mother The children were trafficked by a secret network of doctors, nurses, priests and nuns in a widespread practice that began during General Franco’s dictatorship and continued until the early Nineties. Hundreds of families who had babies taken from Spanish hospitals are now battling for an official government investigation into the scandal. Several mothers say they were told their first-born children had died during or soon after they gave birth. But the women, often young and unmarried, were told they could not see the body of the infant or attend their burial. In reality, the babies were sold to childless couples whose devout beliefs and financial security meant that they were seen as more appropriate parents. Official documents were forged so the adoptive parents’ names were on the infants’ birth certificates. In many cases it is believed they were unaware that the child they received had been stolen, as they were usually told the birth mother had given them up. Experts believe the cases may account for up to 15 per cent of the total adoptions that took place in Spain between 1960 and 1989. It began as a system for taking children away from families deemed politically dangerous to the regime of General Franco, which began in 1939. The system continued after the dictator’s death in 1975 as the Catholic church continued to retain a powerful influence on public life, particularly in social services. It was not until 1987 that the Spanish government, instead of hospitals, began to regulate adoptions. The scandal came to light after two men, Antonio Barroso and Juan Luis Moreno, discovered they had been stolen as babies. Mr Moreno’s ‘father’ confessed on his deathbed to having bought him as a baby from a priest in Zaragoza in northern Spain. He told his son he had been accompanied on the trip by Mr Barroso’s parents, who bought Antonio at the same time for 200,000 pesetas – a huge sum at the time. DNA tests have proved that the couple who brought up Mr Barroso were not his biological parents and the nun who sold him has admitted to doing so. When the pair made their case public, it prompted mothers all over the country to come forward with their own experiences of being told their babies had died, but never believing it. One such woman was Manoli Pagador, who has begun searching for her son. A BBC documentary, This World: Spain’s Stolen Babies, followed her efforts to discover if he is Randy Ryder, a stolen baby who was brought up in Texas and is now aged 40. In some cases, babies’ graves have been exhumed, revealing bones that belong to adults or animals. Some of the graves contained nothing at all.

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€500 REWARD is on offer to anyone who can provide information leading to the arrest of the people who broke into a Marbella clothing store.

 

€500 REWARD is on offer to anyone who can provide information leading to the arrest of the people who broke into a Marbella clothing store.

 

The incident took place at The Jeans Factory Outlet around 5.30am last Friday and around 600 pieces of clothing were stolen worth €45,000.

“My alarm company called me straight away,” said Dutch owner Roy Samshuyzen. At first Roy thought it might be a false alarm as was the case a few months ago.

“Looking at the camera system from home I could not see anything so I headed straight over, still in my pijamas.

When I arrived five minutes later there were around seven police cars already there with the alarm company.”

This would have given the three burglars less than three minutes after the alarm went off to make off with their bounty.

“Since the glass is 8mm thick, like that of a bank’s, the burglars must have rammed it with a truck with a metal bar on the front.” Although the glass was replaced that same afternoon, Roy estimates that it will take “between eight and nine weeks to recover the losses from the robbery.”

The Jeans Factory Outlet is located on the main road on the approeach to Marbella coming from Malaga direction, so Roy believes there is a “good possibility that someone saw something,” hence the reward offer.

Roy was surprised that the “gang ignored the expensive jeans including Ed Hardy, Tommy HiIlfinger and Guess and took around 35 pairs of Antony Morato jeans and pairs from his own brand that are sold exclusively in the store”.

Roy thinks this could be because the gang saw a security screen and cameras on the side of the shop were the more expensive items are kept, but the cameras cover the whole store.

CCTV footage clearly shows three men, one of them wearing a hood covering his face, grabbing as many clothes as they can.

Roy will be heading down to the various markets over the coming days to see if he can find any of the 600 pieces of clothes, which he says would have retailed at about €45,000.

“The frustrating thing is that since it will be on the black market they will only be sold for around €50 to €10 each. Roy is “fed-up” at the unfairness of the situation.

“We do everything by the book, do everything to protect yourself and then sh*t like this happens”.

“I am not worried about the robbery; the money or the damaged store front. All of these things can be taken care of through the insurance.

It is the future of Marbella and of the world I am worried about. I worry for my five-year-old son, what is the world going to be like when he grows up. What kinds of things will he have to deal with?"

Meanwhile, although Roy has never had his business broken into before, his Mercedes Benz car was stolen from outside the store last year.

He was “talking to two men inside the shop about buying a pair of jeans.”

One of them “slipped away and somehow he managed to get behind the store desk and take the car key off the ring".

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Spain Approves Canary Islands Oil Exploration

The Spanish government approved Friday a controversial permit to explore for oil offshore the Canary Islands, in an area that could become by far the largest source of oil production in a country heavily dependent on crude imports. Approval of an exploration license marks the latest move in Spain's shift away from a policy of subsidy-dependent renewable energy projects as it seeks ways to improve its trade balance and steady its budget, but will likely face opposition from environmentalists and local government officials concerned about the threat of damage to the island's tourist-friendly, white-sand beaches.

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Spain's public debt soars to record high

Spain's public debt soared to a record high at the end of 2011, Bank of Spain figures showed Friday, as Madrid struggled to slash costs and escape the eurozone debt crisis. Public debt amounted to 734.96 billion euros ($960 billion), equal to 68.5 percent of annual economic output at the end of 2011 -- up from 66 percent three months earlier and 61.2 percent at the end of 2010. The accumulated debts breached the European-Union agreed limit of 60 percent of gross domestic product (GDP) but was still below the eurozone average, which approached 90 percent in the third quarter last year. It was the highest public debt ratio recorded in Spain since statistics in the current format were first published in 1995. Spain's public debt is rising fast because of runaway annual public deficits that have shot past EU-agreed targets, in part owing to high spending by regional governments. The previous Socialist government, ousted by the conservative Popular Party in November elections, had forecast a debt of 67.2 of GDP for the end of 2011, aiming to curb it to less than 70 percent in 2014. But the European statistics unit Eurostat was not so optimistic. It forecast a public debt of 69.6 percent in 2011, 73.8 percent in 2012 and 78 percent in 2013. Spain's conservative government, which took power in December, has yet to announce a new public debt target. The public debt ratio has grown without interruption since the first quarter of 2008 when, after nearly a decade of fast growth and budget surpluses, which trimmed the debt, it amounted to 35.8 percent of GDP. The situation in the 17 regions is particularly worrying: at the end of 2011 their accumulated debt rose to 140.1 billion euros, or a record 13.1 percent of national GDP, from 11.4 percent a year earlier. Municipal debts, however, eased over the year to 35.4 billion euros or 3.3 percent of GDP. Regional governments enjoy a high level of autonomy, prompting concerns in financial markets that their spending could compromise the central government's deficit-cutting goals. Spain had agreed to cut its annual public deficit to 6.0 percent of GDP in 2011 but it overran that target by a wide margin and ended up reporting a deficit of 8.51 percent of GDP. After winning a slight relaxation from Brussels in its goals for this year, Spain is now aiming for an annual deficit of 5.3 percent in 2012 and 3.0 percent in 2013. But the regions are not entirely to blame. The central government's finances also deteriorated in 2011, as its public debt rose to 52.1 percent of GDP at the end of the year from 46.4 percent a year earlier.

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Cadíz second bridge delayed until at least 2013

The Ministry for Development has announced a delay in the opening of the second road bridge into Cádiz which will now not be open to traffic until 2013. Minister, Ana Pastor, said that not with all the money in the world could a 2012 opening be achieved. 2012 was the target date so that it coincided with the bicentenary of the 1812 Spanish Constitution which was signed in the city on March 19 1812. The General Courts of Spain were transferred there while in refuge from the Peninsular War. The Minister added, ‘It will take at least another 15 months, and that only if there is no wind’. The Ministry of Development says the suspension bridge is now 75% complete, but a fundamental part of the project, linking to the 13 pivot bases which are already showing in the middle of the Cádiz Bay is still to be done. The bridge is the largest road infrastructure project in Spain and has a cost of about 300 million € and will link Cádiz with Puerto Real. It will be known as the Puente de la Constitución de 1812, and not the ‘Puente de la Pepa’ which was the name given by the previous Minister, Magdalena Álvarez.

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Place your bets on Euro Vegas

IT MAY just be the single largest contrarian bet in the euro zone. Sheldon Adelson, a casino tycoon, is expected soon to choose between Madrid and Barcelona for a €16 billion ($21 billion) gambling resort. The euro-zone turmoil does not faze him: “It will take us four to five years,” he told Forbes magazine. “By then everything will be solved.” Mr Adelson’s Las Vegas Sands (LVS) hopes to create a “Euro Vegas”, capable of attracting the 1 billion people who live in the 50 countries within a five-hour flight from Spain. He chose the country because of the weather and because its unemployment rate, now at 23%, “assures us the support of the government”. The numbers are certainly eye-popping. LVS would invest €6 billion in a first phase to build four hotel strips—eventually reaching 12—as well as casinos, shops, restaurants, golf courses and convention centres. LVS says the project could create 260,000 indirect and direct jobs, enough for nearly half the unemployed in Madrid. Spain is already the fourth-largest holiday destination in the world, but LVS reckons Euro Vegas would attract 11m new tourists on top of the 57m a year Spain already gets, increasing tourism spending by €15.5 billion over the next ten to 15 years. In this section News of the world Good for you, not for shareholders Zimplats happens Watch this space »Place your bets on Euro Vegas Luxury on the cheap Nazis in space The view from Liverpool Reprints Related topics Gambling Barcelona Madrid Spain Madrid and Barcelona, used to battling it out on the football pitch, have won a promise of neutrality from the central government. Barcelona admits that Madrid has the edge so far, since it has been talking to Mr Adelson on and off since 2007. But Barcelona has not given up. Mr Adelson recently visited a beach-front site near the city’s El Prat airport, which like Madrid’s Barajas has plenty of spare capacity. National and local leaders are keen on the project but opponents are sceptical of LVS’s claims about job creation, and worry that the casino will become a “fiscal and legal paradise” of tax breaks and exemptions from labour laws—a charge which regional officials deny. However, LVS is thought to be seeking a relaxation of Spain’s ban on smoking in public places, and lower gambling levies. Whichever city won would also have to bear the cost of such things as transport links to the resort. Given Spain’s precarious public finances, and considering that, as Mr Adelson puts it, there are “tens of billions to be made” from the resort, the authorities ought to resist any temptation to splash out taxpayers’ money to win the deal. They will have to assuage public fears of encouraging gambling addiction, infiltration by organised crime and the environmental impact of such a giant construction project. As in Singapore, where LVS recently opened a big casino resort, Spanish officials play down gambling as a small part of the overall package. Another worry is that the project will not happen at all. Spain has had its share of unrealised property developments. A €17 billion casino complex in the desert of Aragon, proposed in 2007, remains unbuilt. But LVS has withstood the global downturn pretty well, and the success of its Macao and Singapore operations gives it plenty of financial firepower. LVS boasts that its Marina Bay Sands development has “moved the needle” in Singapore, with record tourism figures one year after its opening. Euro Vegas would be much larger. A casino resort may lack the prestige of, say, a technology cluster, but Spain will have to take a few gambles to get its soaring unemployment under control.

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55 security guards arrested with fake qualifications

 

55 false security guards working in sensitive positions have been arrested in Madrid, Toledo, Cuenca and Badajoz. The National Police arrested the 55 who have all be established to have been working fraudulently, and some with jobs looking after explosives or acting as bodyguards. A statement from the National Police said those arrested lacked the necessary preparation for the work and were employed because of falsified qualifications. Some of them have a previous criminal record.

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The Spanish Government is to increase the tax on diesel vehicles

 

The Spanish Government has revealed that it wants to increase the tax on diesel vehicles because they ‘contaminate more’. The change will be a modification on the vehicle matriculation tax. The Secretary of State for the Environment, Federico Ramos, gave the news after meeting with the environment experts and said that in principle the regional administrations are in agreement. The local City and Town Halls say they now want to first analyse the financial consequences for them. Diesel vehicles not only pollute with CO2 but also emit Nitrogen Dioxide, and particles in suspension.

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The ex Mayor of Alcaucín in Málaga, José Manuel Martin Alba, who was arrested for a second time with seven other people

The ex Mayor of Alcaucín in Málaga, José Manuel Martin Alba, who was arrested for a second time with seven other people on Tuesday in the ‘Tristan case’, which comes from the ‘Arcos operation’, made a statement on Wednesday to the investigators of the UCO central operations unit of the Guardia Civil. La Opinión de Málaga reports that he denied knowing the land registry civil servants that he allegedly manipulated with false data to obtain the classification of building land. These plots were often purchased by foreign investors with the idea of building on them. However, the Guardia Civil has said that the land was not buildable and therefore a crime of fraud had taken place, and this part of the investigation is still under reporting restrictions. The declarations continue from the arrested civil servants from the land registry, some in payments, others in Hacienda, as well as three management auxiliaries. The Guardia Civil says that the civil servants, ‘coordinated by a lawyer, modified the data base of the land registry with the end of introducing the false information to give legal coverage to the construction of homes on non-buildable land. The Guardia Civil contends that in exchange they received illegal commissions. Rafael Yus from the Nature Studies Group GENA said that he was not surprised by the ex-Mayor’s new arrest. He said the modification to the land registry was ‘part of what they do here’ and claimed it was ‘a corruption which extends to other municipalities, but which it difficult to demonstrate’.

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Card firm in breast implant refund

 

A Midlands woman who was given PIP breast implants that ruptured has recouped the full cost of the surgery from her credit card company. She said Lloyds TSB refunded her £3,700 on the grounds that she was sold faulty goods. The British Association of Aesthetic Plastic Surgeons (BAAPS) said the move should offer a "ray of hope" to other patients with PIP implants. The woman, a hairdresser in her 40s from the Midlands who does not want to be identified, underwent a breast enlargement operation in 2008. She discovered she had been given PIP implants last September when she found a lump and went to a breast cancer clinic. "I was quite worried, but I was told it was just a rupture of my implants. It was only later I realised there was a health risk. I was really quite poorly with it," she said. The woman had the implants removed on the NHS in October, and contacted a firm of solicitors to see if she could get her money back. Because the company that performed the surgery had gone into administration, she was advised to check if she paid by credit card. Having discovered that she did use plastic to pay for the procedure, she applied to Lloyds TSB for a refund and received the money in full three months later. The woman said the credit card company were "wonderful" and stressed that she only had to fill in one form to get the reimbursement. "If I had gone through the solicitors they would have taken a sizeable part of it. Women need to be aware they can easily do it themselves," she said. Fazel Fatah, a consultant plastic surgeon and president of BAAPS, said: "We're delighted that at least a proportion of women who chose this method of payment should now have recourse to securing reimbursement for what are clearly defective, substandard goods." Around 40,000 women in the UK received implants manufactured by the now-closed French company Poly Implant Prostheses (PIP), mostly in private UK clinics. The implants were filled with non-medical grade silicone intended for use in mattresses. Lloyds TSB said it could not comment on the woman's individual case. But a spokeswoman for the bank said: "One of the advantages of using a credit card to pay for goods and services is that consumers can make a Section 75 claim if there has been a misrepresentation or breach of contract, providing the cost is above £100 and less than £30,000. Every Section 75 claim is different and each one will be reviewed on a case-by-case basis."

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Families in Spain face eviction over stranger loans

 

Fighting eviction for failing to pay the mortgage on his home in Spain's capital, Nelson Castillo is now grappling not only with his own debts but also those of a family he does not know. The 39-year-old and his wife acted as guarantors of another Ecuadoran family's loan under a programme run by an agency that negotiated loans for immigrants. In return, that family acted as the guarantor for Castillo's loan. Now, both families are in arrears. And each of them is legally responsible for its own loan and for the loan it guaranteed. "We were two families and we did not know each other. Ecuadorans are like that. We had to sign the papers and that's it. Goodbye, and each side went its own way," said Castillo. Dozens of anti-eviction activists had gathered outside his Madrid apartment building on Tuesday to prevent court clerks and bank officials from ejecting Castillo and his family from their home. Inside the apartment a volunteer psychologist tried to comfort Castillo's wife, 40-year-old Kelly Herrera, who sat in distress on the couch while the couple talked to police. The couple were given until March 30 to pay their debt of 222,000 euros ($291,000) claimed by the bank. And they are still liable for the loan given to the other family. "Today they are demanding my loan. But later on they will demand the second," said Castillo. The couple's lawyer Rafael Mayoral had requested that the eviction be blocked for "humanitarian reasons" because their two children are minors and a knee injury prevents Herrera from working at the moment. But above all the lawyer argued that the couple are "victims of a swindle". The couple and nine other families are suing an agency, Central Hipotecaria del Inmigrante, which ran a system of "cross guarantors" for loans among people that did not always know each other. "It was a pyramid scheme of financial risk management," said Mayoral. Despite the investigation under way into the agency, the courts have refused to issue a moratorium on evictions. Last week the government approved a voluntary "code of conduct" for banks that aims to help poor homeowners settle their debts and reduce a wave of evictions brought on by Spain's economic crisis. For families whose members are all out of work and have no other source of income, the code obliges signatory banks to restructure their mortgage debt by for example lengthening the term of the loan or reducing its interest rate. The goal is to reduce the number of evictions in Spain, which amount to about 300,000 since the collapse of a property bubble in 2008. But the new code will not help Castillo and his family. "The bank did not give me any option, I wanted to give them the apartment in exchange for clearing my debt but they were not interested," he said. Castillo, a waiter, said with pride that he "only spent a few months out of work" since he moved to Spain in 1996. In 2006 he and his wife decided to buy an apartment while Spain was still in the midst of a property boom. The couple took out a mortgage with a variable rate that started out with a monthly payment of 900 euros. But as Euribor interest rates rose, their monthly mortgage payment shot up to 1,420 euros. "It became impossible to pay. I earned 1,000 euros a month and my wife also did not earn much. Things became complicated. I tried to reach an agreement with the bank but it was not possible. I stopped paying," said Castillo. Castillo said he did not know if the family which signed as the guarantor of his loan has suffered any consequences because he stopped making his mortgage payments. "I only met them the day we signed the papers," he said.

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Troubled Spain, Portugal now desperate for rain

 

Fernando Luna, a burly Spanish farmer, yanks a barley sprout from a field as dry as powder. He examines its roots, which are mostly dead, then tosses the stunted shoot away in disgust. "Worthless! This is worthless!" Luna shouts. Spain is facing its driest winter in more than 70 years and bailed-out Portugal next door is in similar straits. Thousands of jobs and many millions in agricultural output are in jeopardy. Both nations are desperately short of so much: tax revenues, bank credit, jobs, hope for the future. Now, it won't even rain. The landscape in northern Spain is now a palette in shades of ugly. Pale brown fields without crops or pasture stretch off into the distance. A pond for watering sheep has shriveled into a dustbowl. An irrigation canal down the road holds only stagnant water, murky from so much sediment and so little flow. Luna waves this way and that, distraught over fields he says are doomed to yield zero harvest. He has given up his winter crop for lost. "Imagine, the color of vinegar! They should be green, green, green," he says of the barley fields that lack shoots. Stalks should be reaching halfway up the shin at this point. Spain got less than 30 percent of its normal precipitation from December through February. There is a slim window of 10 days or so for it to rain and help farmers like Luna salvage at least part of their winter crops of wheat, barley and oats. And not all regions are as bad off as Huesca, a northern province where the Pyrenees lie and where Luna is president of a chapter of the ASAJA farmers association. But the March weather forecast is not good for farmers — just more blue skies, says Fermin Elizaga of the national weather service. "Out in the countryside, the situation is probably going to get worse," he says. A key concern is how full Spain's reservoirs will be for watering the lucrative fruit and vegetable crops that are the pride and joy of the country's euro40 billion ($52 billion) agriculture and livestock industry. Nationwide, reservoirs are at an average 62 percent of capacity — not that bad — but in Huesca they are just 20 percent. That means farmers get only 20 percent of the water they are normally allotted for irrigation and will have to leave much of their land idle. ASAJA estimates this will cost Huesca province around euro1.3 billion ($1.7 billion) in lost revenue from drastically smaller harvests of peaches, cherries, almonds and grapes. In a good year, 6,000 people work in the Huesca harvest and another 2,000 in canning, packaging and related services. It could be a lean year for them, as it will be for much of Spain, with its nearly 23 percent jobless rate — the highest in the 17-nation eurozone — and an economy expected to slip into its second recession in three years. In Galicia, Spain's lushly green northwestern corner where it usually rains all the time, pastures have no grass this year. Farmers there and elsewhere are being forced to ship in fodder for sheep and cattle at a cost of euro2 million ($2.6 million) a day, according to ASAJA national spokesman Gregorio Juarez. "They're all burned up," says Juarez. Being so used to plentiful rain, Galicia and other parts of northern Spain have fewer reservoirs, so they are less prepared than the often blazingly hot south, where places like Andalusia and Extremadura on the border with Portugal catch every drop of precious rain. In Huesca, one reservoir built in the 1950s is now so low you can see the ruins of a submerged village, Mediano. At the best of times, the tip of its 16th-century church belltower peeks out of the water and boaters row up and touch it. These days, the water is so low you could walk into the church itself if the front door were not sealed up. In Portugal, Joao Dinis, a spokesman for Portugal's National Farms Confederation, said the drought has added to hardships caused by the country's acute financial crisis, which forced it to ask for a euro78 billion ($102 billion) bailout last year, making credit scarce. Farmers are enduring "a very, very difficult" period, with cereal crops badly hit and grazing land in short supply. "It's the worst situation in living memory," Dinis said. He says Portuguese farmers need emergency aid of euro25 million ($33 million). The Farm Ministry is calculating the damages and negotiating exceptional grants for farmers with the European Union. In Robres, a speck of a village in Huesca, barley farmer Jose Manuel Allue is taking the rare step of watering his crop, grains like wheat and barley that are normally fed by rain alone. And he is blowing his entire irrigation quota in just two days, using 6-foot-high (2-meter) sprinklers to soak a piece of land as big as 40 football fields. The pole-like devices shower water with a pleasant, rhythmic spritzing sound. "After that is gone, it is just a matter of looking to the sky and hoping," Allue said, taking long drags on a strong, thick Spanish cigarette as the earthy smell of a pig farm wafts by. Seconds later, something does appear in the sky, but it's not clouds: three water-dumping fire planes returning from a mission further north. Forest fires — a staple of Spanish summers — have broken out in recent weeks because of the dry conditions, awfully early in the year for such blazes. Ditto for Portugal. Allue checks the weather forecast on the Internet or TV first thing each morning and hears talk of little else at the town tavern, but he has a herd of 1,100 pigs to tide him over if his barley crop proves worthless. Juarez, of ASAJA's Madrid office, says a drought is the last thing Spain needs now on top of its economic distress. He used a Spanish adage that when a stray dog is emaciated and mangy, it probably has other problems too. "For a skinny dog, it's all fleas," he says. Translation: When it rains, it pours.

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Spanish House Prices Tumble

 

Spanish house prices tumbled at their fastest pace on record in the fourth quarter, a sign that a long-running property bust will continue to weigh on Spanish households and banks. House prices fall over 11.2% in the fourth-quarter of 2011-the fastest contraction on record. WSJ's Sara Schaefer Munoz has been looking at the data and analyzes how this affects its efforts to deal with its debt crisis. House prices fell on average by 11.2% in the fourth quarter from the same period a year earlier, well below the 7.4% decline in the third quarter, while prices of used homes was down 13.7% in the period, the country's statistics agency INE said Thursday. Both readings are by far the worst since INE started recording countrywide prices in 2007, the peak year for Spain's decade-long property boom. Previously, annual price declines had bottomed out at 7.7% in 2009, and analysts say house prices have only rarely fallen year-to-year since at least the 1970s. The drop indicates Spanish property prices are now correcting at a similar pace to that seen in the U.S. soon after the 2008 financial crisis, and may fall further at least this year. In previous quarters, price drops were somewhat contained, the result of support efforts by the government and banks, fearful of the effect of a housing collapse. Spanish banks hold more than €400 billion ($521.32 billion) worth of loans to the construction and real-estate sector, backed by collateral that loses value as property prices slide further. The amount is equivalent to around 40% of Spain's gross domestic product. TK Raj Badiani, an economist at IHS Global Insight, said government data indicates Spanish house prices are down more than 20% from the 2007-2008 peak, even though other evidence points to a possible drop of more than 30%. "The continued imbalance between the supply and demand of housing suggests that house prices will continue to fall throughout 2012," Mr. Badiani said. "The outlook remains bleak, with the demand for housing expected to shrink throughout 2012 with debt-laden households struggling to cope with a devastated labor market and limited access to credit." Last month, Spain's Finance Minister Luis de Guindos presented a clean-up plan that will force banks to set aside an additional €50 billion this year to cover losses from souring loans, mostly property-related. The plan also seeks to allow a faster correction of the property market this year, so that lower prices trigger some demand in the moribund sector. Earlier this week, INE data showed Spain's property sales continued their recent slide in January, with a 26% annual decline. Last year, just over 361,000 homes were sold in Spain, less than half the number sold in 2007. The clean-up plan and other reforms may only have a delayed effect on the euro zone's fourth-largest economy, the Ernst & Young consultancy said in a report. A lack of demand amid an economic contraction that may stretch until 2014 should keep house prices falling for the next three years, Ernst & Young added. Meanwhile, Spain's bond auction was a mixed bag Thursday, with the Treasury selling slightly less than the maximum targeted amount but paying mostly lower yields to investors. The infusion of cheap cash from the European Central Bank has buttressed bond markets across the 17-nation euro zone, but not always equally. Spain's government bond market hasn't kept pace, while Italy, which at the end of last year had been lumped together with Spain as possibly becoming the "next domino," has swapped places with Spain as the country having to pay less of a premium on its debt. The contrasting fortunes also reflects the market's confidence in Italy's ability to make progress on the fiscal front while Spain falters. Italy's economy is likely to record a primary surplus in 2012. Spain unilaterally revised its budget deficit targets and analysts are skeptical if even those targets will be met.

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American Airlines flight attendant restrained after taking over PA system and screaming 'we're going to crash'

 

A flight attendant had to be restrained by passengers and crew on an American Airlines flight after she started ranting that the plane was going to crash over the PA system. According to news.com.au, she told passengers on the flight from Dallas to Chicago: "We are not taking off. We're having technical difficulties. We are heading back to the gate." First class travellers helped cabin crew subdue the woman after she started screaming things like, "I am not responsible for crashing this plane", talking about 9/11, and rambling about American Airlines' bankruptcy.

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