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What Crisis?
Posted: 16 April 2012 01:47 AM  
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Is it just me or are all the shops and restaurants still full at the weekends, even though we are constantly bombarded with news about ‘la crisis’? I know Barcelona is a big city so the effects are less noticeable, but still! And things are not exactly cheap either. My theory is the very generous unemployment benefits….. thoughts?

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Posted: 16 April 2012 02:52 AM   [ # 1 ]  
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Sorry, but my thoughts are that you’re talking out of your arse…

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Posted: 16 April 2012 02:57 AM   [ # 2 ]  
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I’m not joking! What about shops like El Corte Ingles? It’s expensive and always busy. What about going out at night? 15? to get into a club and 8? for a drink is standard.

Do you disagree with the part about generous unemployment benefits?

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Posted: 16 April 2012 03:04 PM   [ # 3 ]  
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I sometimes wonder myself, Richard.  In any big city there are crowds of people out and about, in the caf?s and shops, and one does wonder about “la crisis”.  A Spanish friend of mine and her sister were over in London for four days over Easter, and she was amazed at the huge throngs of Spanish visitors everywhere in London. 
Obviously not an entire population of any country is affected by the recession.  I am sure your reference to the unemployment benefit is meant sarcastically.  Nothing more.  For sure the “benefits” would not take one very far…...

Patricia

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Posted: 16 April 2012 03:12 PM   [ # 4 ]  
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I understand that many are worse affected than others. In my work teaching business English most of the people I come into contact with are educated middle class types who all have decent jobs and good contracts. But I do understand that there is a whole other part of society that is much worse affected.

As for the ‘el paro’ - I’ve heard of several cases of 26-30 year olds receiving up to 1000? per month for up to 2 years. Some take advantage of the time to study which is fantastic but I also know many who are enjoying an extended holiday and travelling. So the unemployment benefit isn’t even spent back in the Spanish economy! This is the part I fail to understand.

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Posted: 26 April 2012 04:29 AM   [ # 5 ]  
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richardavie - 16 April 2012 03:12 PM

I understand that many are worse affected than others. In my work teaching business English most of the people I come into contact with are educated middle class types who all have decent jobs and good contracts. But I do understand that there is a whole other part of society that is much worse affected.

As for the ‘el paro’ - I’ve heard of several cases of 26-30 year olds receiving up to 1000? per month for up to 2 years. Some take advantage of the time to study which is fantastic but I also know many who are enjoying an extended holiday and travelling. So the unemployment benefit isn’t even spent back in the Spanish economy! This is the part I fail to understand.

Yep, kinda sad. And often those folks who spend their time galavanting around the world come back with no valuable skills or experience for the types of jobs that exist out there (say, tech jobs for example). The spirit of entitlement runs deeply in Spain (and elsewhere as well of course) - is this the consequence of a strong social safety net? I hope not, but I digress.

How’s the teaching business been over the course of La Crisis?

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Posted: 26 April 2012 04:35 AM   [ # 6 ]  
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Expatriator…

Congratulations… another milepost… 1600 postings. Thanks for the site, thanks for all the good work and good advice.

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Posted: 26 April 2012 05:51 AM   [ # 7 ]  
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Off topic post! Blasphemer! :D

And thank you too Foxbat! We couldn’t do it without you!

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Posted: 26 April 2012 04:16 PM   [ # 8 ]  
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Back on thread!

Villages of the Damned

http://elpais.com/elpais/2012/04/24/inenglish/1335277689_645856.html

Jos? Ram?n Lizana still gets up at 7am every morning to drive a garbage truck. Mar?a Dolores Jim?nez cleans the village schools. Marifeli Puentes continues to keep a check on births and deaths in the registry office. Alongside them, a further 33 men and women carry on doing their bit to keep Cenicientos, a village of 2,088 people in the west of Madrid, functioning. And they are doing so despite the fact that they’ve not been paid by their employer, the town hall, since June of last year.

Perhaps the most surprising thing about this story is that Cenicientos’ disastrous finances do not set the town apart from the rest of the Madrid region - Madrid City Hall and the large dormitory town of Parla owe one billion euros and 221 million euros to their suppliers, respectively. But it is in the region’s smaller towns and villages where the crisis is making itself felt hardest.

The government has put together a 35-billion-euro fund that the regional and local governments can access. But there’s a catch. Before they can get their hands on the funds, they have to sign up to deep cuts in personnel and services over the next decade.

Jos? Ram?n Lizana has two children, aged six and two, and has had to call on his family for financial help. ?ngel Mart?nez, the town hall’s messenger, who is partially disabled, has a mortgage to pay, and has also had to look for help from friends and family to make ends meet.


It’s not easy to work out how Cenicientos got into financial trouble. The main challenge is that the mayor, Enrique Jim?nez Concejal of the Popular Party, has so far managed to avoid opening the town hall’s books. He doesn’t live in the village, he never answers his phone, and hasn’t called a meeting since November. Local representatives from the two opposition parties say that over the last decade he has only presented two budgets, in 2002 and 2008. They estimate that the village owes around four million euros, and they are calling for the regional government to intervene and take control of the town’s accounts. They add that they do not even know whether the mayor has signed up to the government’s rescue fund, or how much has been gathered in taxes this year….

continues… next post

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Posted: 26 April 2012 04:21 PM   [ # 9 ]  
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continued from previous post…

The 2008 budget wasn’t actually presented until 2010, and of its almost two million euros, around 70 percent went on wages for the town hall’s 36 employees, along with four other civil servants, who are still on the payroll. The widespread belief in Cenicientos is that the mayor, like so many others throughout Spain, has been practicing pork-barrel politics. There are 1,600 eligible voters in the village. Most of them always vote for the same party. The group known as the undecided in the rest of Spain might well be called municipal employees in Cenicientos, says Luis Ramos of the local Socialist Party branch. He explains how the system of patronage works: “Around 40 grateful employees mean the votes of some 40 families. Elections here are won on less than 100 votes…”

Cenicientos’ municipal employees say that the last time their employer fell behind on paying their wages - for five months - they received their full backdated salaries one week before the municipal elections. One employee summed up the tactics of the mayor: “Each month we would have to traipse up to the town hall, ask for a meeting with the mayor, and say to him, ‘Enrique, pay us, please, pay us’.”

One reason Cenicientos might be so indebted could be due to the high cost of staging the village’s annual fiestas each August. The village lies in what has become known locally as the valley of terror. The name doesn’t come from a reputation for kidnapping or murder, but from fiestas that attract some of the best fighting bulls. But a terrific bullfight doesn’t come cheap. Last year’s four days of taurine entertainment cost 80,000 euros, along with the expenses of other festivities and the organization. What’s more, in a village of a little more than 2,000 people, there is a state-of-the-art bullring that seats 2,500.

The village’s bullring may be impressive, but many in Cenicientos say that they would rather have seen their money spent on maintaining social workers or carers for the elderly in the area - now they have to travel to the town of San Mart?n de Valdeiglesias, 30 kilometers away.

More jobs are to be lost in Cenicientos. Teachers at the infant school are to be laid off, as are cleaners. The mayor has just announced that the community is to shed 12 municipal jobs, among them those of Jos? Ram?n the garbage collector, Mar?a Dolores the cleaner, ?ngel the messenger, and Marifeli the village registrar, all of whom were told in January that due to the village’s accumulated debts, their services would no longer be required.

Most accept that the village can probably no longer afford to pay them, but they also wonder why they have been laid off, given that their wage bills are among the lowest, some of them amounting to little more than 400 euros a month. They also fear that they will not be paid any compensation. “There may be too many of us, but if they are going to give us the sack, then they should do so properly,” says Rosa Montero, the infant school’s concierge, who is one of those likely to lose their jobs. “It doesn’t look like we’re going to get any compensation,” she adds.

For the moment they can only wait and see. They have not yet been told when their contracts will be rescinded. Mar?a Dolores says that the strain is becoming hard to bear. “It’s been nine months now since we have been paid, and now we are being told that we are getting the sack.”

To make matters worse, it looks as though the mayor hasn’t been paying his employees’ social security contributions. The UGT labor union says that it has evidence that some 700,000 euros are owed by Cenicientos town hall in social security payments for its employees, which means that once the 12 are laid off, they won’t be able to claim unemployment benefit.

Marifeli Puentes has been the village registrar for 26 years, and currently earns 600 euros a month. She feels a strong bond with the community, and is not only sad to be losing her job, but also wonders what the future holds for Cenicientos. At her small office in the town hall, there is a cabinet containing a ledger. It lists all of the deaths in Cenicientos for the last 150 years.

“Those people are our ancestors,” she says. “After I’m gone, who will take care of all this?”

My comment…What a bloody awful sad reflection of the times. What the hell is the Mayor playing at? How come he is still in power after all this time?

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Posted: 29 April 2012 09:20 PM   [ # 10 ]  
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The Expatriator - 26 April 2012 04:29 AM

Yep, kinda sad. And often those folks who spend their time galavanting around the world come back with no valuable skills or experience for the types of jobs that exist out there (say, tech jobs for example). The spirit of entitlement runs deeply in Spain (and elsewhere as well of course) - is this the consequence of a strong social safety net? I hope not, but I digress.

How’s the teaching business been over the course of La Crisis?

To be honest all my peers and I have always had work (I almost feel guilty). I’ve had 3 teaching jobs in 5 years and moved between them fairly easily.

Logic would say that the crisis = less money = less money to pay for English lessons = no work for English teachers. But like I said I’ve always been busy.

Foxbat, that’s a sad story you tell, I think we’ve not experienced things quite so bad up north.

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Posted: 30 April 2012 05:33 PM   [ # 11 ]  
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IMO, Richard and Fox and everyone, that both in crisis times and in good times there will always be businesses that do better than others.  And, of course, there will always be those who have more money than others, and are able to ride out recessions.  That is how it is. 

Many Spanish parents are still able to (expensively) send their offspring for weeks, or months, to English-speaking countries during the Summer, because language learning is seen as important.  Certainly, in my own country, Ireland, huge numbers of young (often very young) Spanish children come to learn English.  And the experience certainly doesn’t come cheap! 

Patricia

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Posted: 30 April 2012 09:06 PM   [ # 12 ]  
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Many Spanish parents are still able to (expensively) send their offspring for weeks, or months, to English-speaking countries , due to there kids need English .. but the parents are saveing up all year for this ... So some spend is down here in spain ... i do get to chat and travel in EU ... IRELAND RIPE OFF .....  i get a beer here for 3 Euros Spain in Ireland its 4.50 plus as your price of fashion OMG i thought Ireland was bust…. now price have come down bitt but not much ...

the kids now shop online here in spain and Ireland .... kids used the shops as window shopping

Barcelona is a big city so the effects are less noticeable, but still! And things are not exactly cheap either Yes was two matches Elcassico and UEFA Champions League ticket were not cheap and yes for night the drink was not cheap ...

Spain , the town halls loacl Regional Government Ex Ministry spanish political take more bank handers to get thinks do here ...

Welcome to the land of ma?ana

i could keep going but i wont for now

EU problem is JOBS we need investment to get jobs going again , this bring taxes , IVA and spend

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Posted: 30 April 2012 10:13 PM   [ # 13 ]  
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Yes, Jur, Ireland is expensive, of that there is no doubt.  And yes, the Spanish kids have been coming to Ireland for decades to learn English.  I myself have helped out a few people with information regarding studies in Ireland and I certainly know it is expensive.  It is a big business of course for the intermediaries, those agencies who organise the study packages (flights, accommodation and all the rest) in Ireland.

And the visitors (tourists) come to Ireland too.  Ireland is a big venue for congresses and conferences, and the cities always seem to be very busy.  So, again, it is a fact that some feel the recession more than others.

Patricia

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Posted: 30 April 2012 11:26 PM   [ # 14 ]  
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jurdyr - 30 April 2012 09:06 PM

EU problem is JOBS we need investment to get jobs going again , this bring taxes , IVA and spend

I think about this a lot. The problems I see are in the labour market and in innovation/creativity/technology. Europe has been riding tourism and culture as major engines of properity through the last 50 years but the major growth areas in the next 10-20 years will be in technology (particularly web) and energy.

Spain and Germany has done well to invest in alternative forms of energy but it’s the Chinese that are undercutting and securing a position as the industrial leaders in solar and wind. I don’t see why Spain couldn’t have taken that banner with lower overall industrial costs and higher education than many competing territories. Spanish energy companies are strong though, so perhaps a hot Spain-based manufacturer will break through eventually.

As for Internet technology - given the level of education and decent infrastructure, I could see Spanish tech companies making huge gains in Latin America by both copying English tech companies’ ideas and innovating for the unique cultural challenges of the 800 million strong Spanish-speaking market.

I also think expats have a unique position to bridge the two worlds and luckily see more and more Americans and Brits returning after having spent time in Spain to study/work with big ideas. If only the Spanish companies were able to capture those minds and keep them in Spain (which shouldn’t be so hard - the lifestyle is addictive).

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Posted: 01 May 2012 12:48 AM   [ # 15 ]  
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missed your mile stone Expatriator?

Congratulations? another milepost? 1600 postings

my ex boss father has alway said “There’s Always Money To be Made In A Recession” and yes i see few people doing this ...
as in innovation/creativity/technology and R&D people are doing it but not to Large-scale ...  the chinese , it low costs and cheap labour
China is losing its title as the world?s lowest-cost producer of everything. but it still cheaper there ...  we see when apple came under fire for there criticism that their products are built on the back of mistreated Chinese workers ... Apple and Foxconn agreed to tackle violations of conditions among the Chinese workers assembling the iconic gadgets of the American firm.

dont for grt paper work in spain is killing works , R&D and new jobs .... there two much red tape ...

The European Central Bank is pressing the Government to cut public sector there hightest pay here in spain .. same across EU zona ...

again JOB = TAXES = SPEND = IVA = More JOBS

would the political party please listen to used ... we need jobs

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