banks in spain cities in spain expats in spain mortgages in spain properties in spain spanish economy spanish property spanish unemployment Zapatero a
Last week the Spanish Prime Minister Jose Luis Rodriguez Zapatero announced that even though the economic situation may be tough at the moment an economic recovery is expected to start in the second half of 2009, refuting a report by the IMF stating that this would not happen until at least 2010. He also said that this year would be a serious challenge for his government but how he was determined that the recovery in Spain would be managed efficiently.
A huge 11 billion euro recovery budget was unveiled recently aimed at kick-starting the economy, by creating 300,000 new jobs using 8 billion euros and the remaining 3 billion euros is going into a Special State Fund which will be spent on the environment, struggling industries and research and development.
Towns and cities in Spain can apply for money from this budget but need to submit detailed proposals about how this money will be spent to help the unemployed and the community in general.
This of course is good news for the expatriate community, who have recently been dubbed as ‘the new poor’ in Spanish newspapers. Spanish unemployment is hovering around the 3 million mark, and it is difficult enough for the Spanish to find work let alone British expats. The current economic climate has led to a huge number of expat Spanish property owners and members of the British community to pack up and go home to the UK.
Even though the recovery may begin this year, many think that it will take 3-4 years for a significant improvement.
There have also been rumours that this recovery package could be augmented by a reduction in interest rates.
Mortgage non-payment has tripled over the last few months according to Spanish Banks and it appears to be a growing problem with both private and business owners of Spanish properties . Various sources are saying that February could see our mortgages in Spain reduced, following the example of other European governments, to help with the growing problem of defaulting on mortgages and repossessions.
Only time will tell how quickly these measures will take effect.
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