Mar 252013
 
crisis Crisis in Spain 2013

In 2014 there will be two types of Spaniard. Those living overseas and the homeless.

As Cyprus teeters on the edge, what’s the latest from Spain? I was sent a link to this video about the situation in Spain made by the consultancy Grant Thornton. It’s certainly refreshing to hear a positive take on Spain’s current situation. Reading the news, it is all to easy to think of Spain as being in a state of total collapse, this video goes some way to explaining why that isn’t the case. Spain’s engineering sector, in particular, is world leading and will undoubtedly be one of the ways in which the country will emerge from the debt crisis.

Tourism too is and will continue to play its part. And it’s true, I can’t quite reconcile the bad news stories (home repossessions, unemployment, average salaries, etc) with the feeling you get actually being in Spain.

I think you’d expect to go to Spain and see just everyone sleeping out on the street and weeping on street corners (I exaggerate for effect but it’s not far off the perception).
The truth is very different of course BUT where is the impact really being felt & seen? The numbers are the numbers so average pay, unemployment, etc are all presumably real.

Is it that you have swathes of the country where the crisis is very very apparent and others where you don’t? Is it that the hidden economy is so large that the official figures are somewhat irrelevant because half the population is living off money stored in their mattresses?

Why am I hearing about so many educated young Spaniards leaving the country? Why is Brighton full to the brim with Spaniards?! I know a chef here who advertised for a washer-up at the minimum wage (£6.50 an hour) and had loads of applications from Spaniards including doctors & architects.

Well, here’s our good and wise friend Isabel Cortes’ take on it and I think it’s a refreshingly frank explanation and the first which has reconciled the feeling you get being in Spain with the headlines.

“It’s true that it is a very special situation. In truth, in the street you don’t notice it so much (Isabel is based in Madrid). The bars and restaurants continue to be full though the majority, including the top end ones, have dropped their prices. There are many, many closed shops and many which have turned into ‘outlet shops’.

Of course, there is very little work and Blanca’s (her daughter, in her mid-30s) generation, people incredibly well prepared and with spectacular CVs, are unemployed after having had important jobs with responsibility. This explains why there are so many of them overseas accepting rubbish jobs. Here in my building last summer, the doorman’s holiday cover was a 42 year old architect!!!

Charitable organisations have seen a tripling in the number of people asking for help. Many families are living off the pensions of their grandparents and if it were not for such strong family ties and A LOT of hidden economy, we would have seen public order breaking down by now.

It’s also true that for many people in the upper and upper middle classes, it seems that they haven’t really noticed the crisis.

We’ll see where this all ends, above all, when.

What’s happening is that the Spanish character means that they take calamities somewhat in their stride with a very particular philosophy, in general preferring to carry on living out in the street or in the local bar than being locked away at home.

Let’s see if the English start to travel to Spain….”

There’s also a degree of good humour to the Spanish, I particularly like this example:

gallego Crisis in Spain 2013

 

Which translates as:

Each century a Gallego (Galician) and a German makes life difficult for Spaniards. We’d better get together to get rid of them again.

(In case you don’t know, the top picture is Franco (Galician) with Hitler – the bottom is the current Spanish president Rajoy (also Galician) with German Chancellor Angela Merkel).

If you’d like to travel to Spain, don’t forget Pura offer a great range of handmade active holidays to Spain.

 Posted by at 11:15
Feb 212013
 

ledger Whats in a Name?

Payments ‘off the books,’ are probably best to be kept out of your ledger, Sr. Barcenas

The Bard had a point when he said that names can be deceiving. Especially so, apparently, when it comes to Spain’s political parties. The Partido Popular translates literally as the People’s Party, and for an English speaker, the connotation of the Popular Party is unavoidable. Either translation would appear to be wildly inaccurate at the moment. Spain’s ruling PP has been the subject of intense media scrutiny these past few weeks.

The furore stems from the publication in El País of ledgers allegedly scribed by Luis Barcenas, former Treasurer of the party. These revealed a number of payments to leading members of the party over several years, including the current Prime Minister, Mariano Rajoy. The payments, it is alleged, were funded by illegal party financing made by construction tycoons, in a ‘kickback for contracts’ type scenario. It should be noted that the PP are adamant the ledgers are false.

This might sound like it comes out of a Sopranos script, and certainly makes fiddling your expenses for the odd duck house seem trivial. Even more so when you hear that Barcenas is claimed to have a Swiss bank account with some €22m in it. With Spanish unemployment at over 25%, headlines such as, ‘Why is Spain so corrupt?’ and rumblings that this is ‘Rajoy’s Watergate,’ it’s no surprise that the emotions of the party, the press, and the people are running high.

The PP’s popularity, of course, is not. Recently they polled at around half the support levels they had when they gained office. It’s one thing to bear the brunt of austerity when the situation can be blamed on the elusive ‘global financial crisis,’ quite another when you hear that the leaders imposing the austerity are sitting on bank accounts laden with kickbacks.

Like Britain, Spain can usually turn from political antagonisms and take comfort in the largely popular royal family. Now even this is denied them, as Iñaki Urdangarín, former Olympic handball player and husband of the Infanta Cristina, is accused of embezzling public funds, fraud and corruption. His bail was set at over €8m.

Whatever the truth of ledgers and backhanders, (and chances are it will be a long time before we ever find out the truth), none of this helps Spain on its road to economic recovery. We can only hope that resolution is swift, and Spain can move towards a brighter political and economic outlook. Failing that, perhaps Pedro Almodovar will make a good film about the corruption scandal.

Oct 222012
 
ordesa The way out for Spain?

Ordesa National Park in the Spanish Pyrenees, rarely, if ever publicised by Spanish tourism authorities

I work in tourism and I therefore see the heart of Spain’s cities, the beautiful parts of the landscapes, I’m not out in the manufacturing belt or trading in an office so this is a patently one-sided view. In my defence I’d remind you that tourism is Spain’s largest industry.

What was striking on my recent trip to Spain were the hot spots where you could really see money coming into the country and it was coming in with the tourists.

Seville, the heart of the city around the cathedral, has a buzz about it. Restaurants are full, hotels bursting at the seams and people taking carriage rides constantly. Similarly in the heart of Madrid, there is a sense of cash flowing in where the tourists are happy. Madrid’s Mercado San Miguel is a great example of this. Barcelona is also full of visitors, all apparently spending a sizeable amount of money.

It’s here that Spain, I think, has a massive opportunity. The mass market flop and drop holidays along the Costas will always sell. The country has done well to make its cities such popular destinations for the short break market – Barcelona, Seville, Madrid and Valencia in particular stand out. What I think Spain has failed to exploit to anywhere near the extent it should, is her natural beauty.

Driving along the Pyrenees in September I was treated to a display of the most beautiful landscapes at their very best at that time of year. Along the way I was visiting, and staying in, a range of small rural hotels. Without exception, these hotels were of a price/quality ratio that I have seen nowhere else in Europe.

Here we have the most incredible landscapes, beautifully managed, easily accessible and to top it all you can sleep in a beautiful small hotel and eat great food at a price that would buy you pure mediocrity in the UK.

And yet, I have yet to see the Spanish tourist board actively promote this kind of rural tourism. I have a personal theory that this comes down to the regionalism of Spain, that promotional budgets are allocated along regional lines. Unlike cities, natural features hardly ever exist neatly within the confines of a single region. The Catalans shy away from spending their promotional budget on the Pyrenees for fear that the visitor will stray accidentally into Aragon or Navarra…The Asturians won’t mention the Picos de Europa in case the visitor stays in Cantabria by mistake. And if a visitor the Aracena hills of Andalucia ends up in Extremadura, what then?

I might be being harsh but I honestly can’t think of any other reason that a country so blessed with natural beauty would be so backwards in coming forwards.

The way out for Spain? is part 3 of a series of 3: read part 1 or read part 2.

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