Business

Veremonte has added additional uncertainty to the future of the BCN World project, the largest holiday resort in Europe based in the Costa Daurada, near Tarragona. After a $6 billion investment, it will include – among other facilities – 6 mega-casino hotels, amusement parks and shopping malls. Veremonte – which was initially leading the project – announced that it could leave, depending on how the Catalan Government will develop the final Urban Plan and how it will set the conditions for the second phase of the casino licences' tender. In 2012, Veremonte had already reached an agreement with La Caixa bank to buy 500 hectares of the land. However, the company missed the first deadline and did not meet the second one (last December) to do so, arguing that the final Urban Plan had not yet been approved. The Catalan Government then jumped in and reached an agreement with La Caixa for the rights to buy the land and guarantee the project's continuation. Veremonte still continues to be linked to the project through the casino licence tender, for which it is running with Hard Rock and Melco.

Catalan exports totalled €15.66 billion for the period January-March 2015, a 6.6% growth on figures from the 1^st quarter of 2014. This represents a new historic high, setting a new record for Catalonia’s export sector, which has been growing strongly over the last few years. As well as this, exports in March increased by 15.4%, reaching the highest amount ever recorded for a single month. Exports from Catalonia during the first quarter of 2015 represent 25.7% of Spain’s total exports. Regarding Catalonia’s imports, they totalled €18.48 billion, a 4.4% increase. Catalonia’s trade deficit reached €2.82 billion, representing a 6.3% drop on figures from the previous quarter.

The 19^th edition of Barcelona’s International Building & Construction Show opened its doors on Tuesday, rebranded as 'Beyond Building Barcelona-Construmat'. The event – which is held every two years – will be on until Saturday 23 May, hosting around 300 exhibitors from 15 different countries. For the first time after 7 years of continuous decline for the construction sector, Construmat – the most important trade fair for this industry in Spain – kicks off at a time of gradual recovery for this sector, according to the figures of the last few months. For Josep Miarnau, Chairman of the show, this year represents a turning point and the end of a cycle. Held in the Gran Via venue of Fira de Barcelona, the show is organised around 4 main thematic pillars: Innovation, Design, Renovation and Sustainability. Moreover, internationalisation will play an important role as well, with 145 projects from all over the world at the tendering stage.

A major step forward in Catalonia's public research on technology has been made this month, with the official establishing of Eurecat on 1 May. The new integrated hub is a result of the merger of 5 advanced Catalan technology centres in the first phase. Last Wednesday, it incorporated a further 13 companies onto its Board. Eurecat is aimed at boosting technology research and its business applicability, particularly among private SMEs, which represent most of Catalonia's economy. Conceived as an engine for key technologies, it is a tool for implementing the Strategy for the Smart Specialisation of Catalonia (RIS3CAT). The latter was drafted by the Catalan Government following the EU Commission's decision to make 'smart specialisation' a prerequisite for attracting EU funds during the period 2014-2020. By the end of 2020, the centre is expected to have attracted funding from the EC's Horizon 2020 framework and the RIS3 to the tune of €200m.

The Spanish Government have finally announced that construction work for the train shuttle connecting Terminal 1 of Barcelona El Prat Airport to the city centre will kick off "in a few weeks", after many years of delay. The statement was made on Thursday by Spanish Deputy Prime Minister, Soraya Sáenz de Santamaría, after the weekly Cabinet meeting. The new train shuttle will carry travellers between T1, the newest and busiest terminal, to Barcelona's Sants Station in 19 minutes, making a stop at Terminal 2. According to the Deputy PM, the Spanish Ministry of Transport plans "a more-than-€200 million" investment in the project. Santi Vila, the Catalan Minister for Planning and Sustainability, described the announcement as "excellent news". An estimated 7 to 9 million people are expected to use the train shuttle each year.

The German multinational company Basf announced on Tuesday it will invest €21 million to expand one of the plants it has in the area of Tarragona, in Southern Catalonia. Basf operates several plants in the Tarragona area, which is Spain's main centre for the petro-chemical industry and one of the most important ones at European level. The investment announced this Tuesday is the largest made by the Spanish division of the German multinational in a single plant in many years, confirmed the company. The centre producing the innovative liquid fungicides for sustainable agriculture will extend its facilities and increase production capacity of these fungicides for high performance crops. Once the work is completed, the company will add 30 workers to its staff. Basf expects the expansion work to end and the new production line to be fully operational by the end of next year.

Last April, Banc Sabadell filed a takeover offer on 100% of the shares of the UK lender TSB, partially owned by LLoyds. On Monday, the Catalan bank announced it had already exceeded the 75% minimum bid of the takeover offer, reaching 81.23% of TSB shares. However, this percentage is still likely to increase in the upcoming days, since there are 14 remaining days till the end of the takeover's acceptance period. In order to fund the transaction, the Catalan corporation will carry out a €1.61 billion capital increase (€1,607 million). Current shareholders have a preference call in this capital increase. Banc Sabadell, is one of the few banks to emerge stronger from a financial crisis that has redrawn Spain’s banking sector. Unlike many of its Spanish rivals, the bank is in good shape reporting a 50% increase in annual profits at the end of 2014 to €371.7 million. Since 2007, it has doubled in size and is now Spain’s 5^th largest bank. It achieved this mainly through an energetic programme of acquisitions in Spain and abroad. 

The German car manufacturer has announced massive investment in two of its factories in Spain: its plant located in Martorell (Greater Barcelona) and its factory in Navarra. In particular, Volkswagen expressed its intention to invest €4.2 billion between 2015 and 2019 in what many newspapers have called "the largest industrial investment ever made in Spain". According to estimates made by the Catalan Business and Employment Minister Felip Puig, it is likely that more than half of the total investment will be concentrated on the plant in Martorell, which builds Seat cars as well as models from other brands of the Volkswagen group such as Audi. In a meeting with the Spanish Prime Minister Mariano Rajoy, Volkswagen Global Sales Vice President, Javier García Sanz, stated that the two plants that will receive the multibillion investment are among "the best factories of the Group".

House sales in Catalonia have recorded a double-digit growth rate in March compared to the same period last year, official data from the Spanish Statistics Institute (INE) has highlighted. The number of house sales was 4,334 units, which represents a 10.2% annual increase over March 2014 figures. So far, Catalonia has accumulated six consecutive months of positive annual rates for house sales, and all its provinces have followed this trend with the exception of Tarragona. In particular, Barcelona Province stands out with an above-the-average 15.66% annual increase. In Spain as a whole, the number of houses sold in March was 27,280 units, a 2.1% increase in annual terms and the 7^th consecutive month of positive annual rates.

The 38^th edition of the Barcelona International Motor Show kicked off on Thursday, with a session dedicated to journalists and industry professionals. On the first press day of the event, 11 carmakers unveiled some of their new products. In particular, SEAT – the Barcelona-based car manufacturer which forms part of the Volkswagen group – unveiled the new 2015 models of the Ibiza and Alhambra ranges, two world firsts. The Ibiza's new model retains the exterior design of its predecessor but incorporates state-of-the-art technology to allow smartphone use while driving. The International Motor Show will open its doors to the general public on Saturday 9 May, with 38 international brands – 17 more than two years ago, marking a turning point after the darkest moments of the economic crisis.

Sebastian Vettel, Ferrari Formula One Team Driver, together with the President of the Catalan Government, Artur Mas, have set on Thursday the symbolic first stone of the company’s first theme park in Europe, which will be an expansion of PortAventura, the main amusement resort in Catalonia, located on the Costa Daurada and near Tarragona. Ferrari Land is expected to be ready by the end of 2016, after an initial investment of €100 million. It is likely to become PortAventura’s main attraction and is expected to make the Catalan holiday and amusement resort reach 5 million visitors per year. Once Ferrari Land is operational, it will employ about 150 people, in addition to PortAventura’s staff. The project also includes a 5-star hotel themed around the Ferrari brand, but this will be built during a second stage.

The Catalan economy has now accumulated 8 consecutive quarters of economic growth, posting a 0.9% increase in GDP between January and March, according to provisional data released on Thursday by the Catalan Finance Ministry and the Catalan Statistics Institute (Idescat). Regarding inter-annual figures, the Catalan economy had grown by 2.4% by the end of the first quarter of 2015 compared to figures from the same period in 2014. These last figures confirm a strengthening of inter-annual growth, since last December it reached 1.9%, and an overall strengthening of the Catalan economy and its recovery from the crisis of the last years. The recovery of the internal demand and the continuing good performance of the export and tourism sectors are the main engines behind the positive figures from the first quarter of 2015. In addition, the industrial sector has been growing for the last 3 years and construction has started to grow again after almost 7 years of continuous decline.

Official data released on Tuesday by the Spanish Employment Ministry show that both Catalonia and Spain as a whole registered the largest monthly decline in unemployment for a month of April since 1996. In particular, Catalonia closed last month with 552,974 people registered on the Catalan Public Employment Service's list, which means 18,681 fewer jobseekers in comparison with March 2015, a 3.27% drop. In annual terms, registered unemployment in Catalonia fell by 9.62% (58,848 fewer people), which is the highest percentage decline since May 2000. These figures mean that registered unemployment in Catalonia has fallen for 22 consecutive months. In Spain as a whole, at the end of April 2015 the number of people registered as unemployed stood at 4,333,016, which means 118,923 fewer jobseekers than in March, representing a 2.67%. In annual terms, registered unemployment in Spain dropped by 7.5%, as 351,285 fewer people were registered as looking for a job.

The Barcelona-based fashion company Desigual announced in a press release on Monday that Manel Jadraque is no longer the firm’s CEO, following a "mutual agreement" between the Catalan multinational and the executive. Jadraque was both the company's Chief Executive Officer and its Director General. His executive functions will be assumed by Thomas Meyer, Desigual's President and founder. According to the company, "the current challenges facing the brand encouraged this decision". Jadraque had worked for the Catalan brand for more than ten years. He will remain a member of the Board of Directors, the company has stated. Desigual’s turnover in 2014 improved by 16.2% on its 2013 results, reaching €963.5 million.

Barcelona's Chamber of Commerce has predicted that the Catalan economy will grow by 2.7% in 2015 and 3% in 2016. The latest estimates made by the Chamber in February foresaw a growth of 2.5% in the Catalan GDP for this year. The President of the Chamber of Commerce, Miquel Valls, said that this growth "has a lot to do with the surprising recovery of domestic demand, driven by job creation, and increased confidence in the economy." Valls also said that the depreciation of the euro and oil prices are factors that have contributed to the rise in GDP. Besides, the Spanish economy is expected to grow by 2.5% in 2015 according to the IMF or by 2.8% or 2.9% according to the Bank of Spain and the Spanish Government respectively.