A study by a Catalan savings bank CatalunyaCaixa recommends helping young people to rent empty apartments in order to reduce the stock. The stock is expected to rise to 131,100 houses in Catalonia, while in the whole Spain the figures will reduce to 693,000 by 2015. However the situation is not the same throughout Catalonia, and some places such as Barcelona have a smaller stock in relation.
The metro strike organised by employees of Barcelona Public Transport (TMB) who were demanding a salary increase has been cancelled. The bus strike is still planned, although after the metro’s cancellation, bus workers would be also considering doing so. The strike was coinciding with the world’s main trade fair and conference of the mobile phone and mobile technology industry. However, it was not affecting taxis, tramways, airport buses, and commuter trains. The strike will only affect urban buses. The underground will be operating as normal. During rush hour buses will function at 50% of their capacity and the rest of the day at 20%.
With the measure, Barcelona will no longer host the headquarters of the Spanish Authority regulating the Telecommunications Market (CMT). However, the Catalan capital could still host a delegation of the new body, considering the presence of telecommunications companies in the Catalan capital. The Spanish Government has approved the creation of a single super regulatory body controlling competition throughout Spain, including stock markets and other specific markets such as energy, telecommunications, railways, airports, audiovisual media, and postal services. The new body will directly depend on the Spanish Economy Ministry.
The Barcelona-based energy company’s net profit growth is due to a business increase in Latin America and the synergies created after the merger of Gas Natural with Unión Fenosa.
The Catalan company opts for sustainable energy and internationalisation to get through the economic difficulties. With this move, Baxiroca hopes to become Europe’s major supplier. The plant has cost 4 million euros and will export 80% of its production.
The 36 wind farms currently in Catalan territory produce enough electricity to supply 2 million people every year and, at the same time, they place Catalonia eighth in the ranking of wind producers in Spain. According to the Catalan Government’s Energy Plan valid until 2015, wind power production could continue to grow and reach 3,500 megawatts.
Public employees have taken to the streets to put pressure on the Catalan Government during the negotiation of next year’s budget. The Government proposed 19 measures affecting public employees and aimed at saving €625 million in 2012. They include salary reductions, modifications in working conditions and review “of temporary staff”. Negotiations began on November 30th and, despite some temporary suspensions, they are on-going. The Catalan Government wants to close a deal as soon as possible, and unions want to keep negotiating until next year’s budget approval.
The wine sector foresees an increase of cava and wine consumption in Spain and Catalonia, as well as in the foreign market, during the upcoming Christmas holidays. The price adjustment, one of the measures used to fight the financial crisis, will help to sell one million more bottles compared to the same period last year, however producers predict purchases to be last minute.
The Catalan energy company reduced its debt to 54.4%, thanks to disinvestments. Gas Natural Fenosa ended the first nine months of the year with a net profit 0.3% lower than that in the same period in 2010. However, taking into account the effect of the disinvestments, the net profit increased by 11.6%.
With this label, foreign house buyers can be 100% sure that the new bought property fulfils all the quality and town planning regulations. The Catalan Minister for Territory and Sustainability, in charge of Housing, Lluís Recoder, announced the creation of an official label recognising the “quality of real estate”, in order to offer more legal safety and guarantees to consumers. Recoder hopes this certificate will help the sector, as consumers will be in a safe framework, from a juridical point of view.
Catalan GDP grew by 0.7% during the second quarter of 2011 compared to the same period in 2010. However, in the first quarter it grew by 1.1%. The export sector continues being the Catalan economy’s engine, while internal demand fell. Catalan GDP grew by 0.2% from the first to the second quarter this year, the same rate than for the rest of the European Union. At the end of 2010, Catalan GDP represented 209.7 billion euros, more than Finland’s, Portugal’s or Venezuela’s.
Tunisia will benefit from the greatest investment with 73 million euros for the Kairouan factory. Besides, Ciments Molins is aiming to penetrate into the Chinese market with “a small two million euro investment” in prefabricated products, as a start. 87% of the investments will be channeled abroad, specifically in Tunisia, México, Argentina, Uruguay, Bangladesh, and China.
‘Construmat’ is Spain’s main trade fair for the construction industry and will run until Saturday May 21st. Barcelona’s fair will have a “sister” event in China next year, with Chinese companies but also with those present at the current ‘Construmat’.
During the first three months of 2011, housing prices dropped by 4.5% compared to the same period in 2010. The end of fiscal advantages for property purchase is the main reason behind this drop. The average square metre price in Catalonia is now set at 2,145.2 euros. These prices have not been seen since early 2006 and represent a 14% drop compared with the historic maximum in 2008.
Compared to 2009, real estate sales increased by 21.4% in Catalonia. The Catalan market’s activity triples the Spanish average. However, forecasts for 2011 are no so optimistic due to the VAT increase and the end of the fiscal deduction for purchasing houses and flats.