Spain is not Uganda
This was texted by the Spanish Prime Minister to his Finance Minister during the negotiations on Spain’s financial bailout.
The BBC discusses it here. Here’s the first paragraph.
Spanish Prime Minister Rajoy sent a text to his finance minister in the midst of negotiations on the terms of a bailout for Spain’s banks. Urging him to hold out for a good deal, it said: “We’re the number four power in Europe. Spain is not Uganda.” The remark caused a storm of protest in Uganda and some ironic tweets pointing out Ugandan economic success. So how do the two countries compare?
I actually think, that many ideas from the so-called Third World can be applied successfully to countries like the UK, the US and Spain.
The Spanish Bailout and Gibraltar
Spain makes two sets of headlines today; it has got a massive loan to sort out its banks and it is expected to protest loudly at the Wessexes visit to Gibraltar. Although, we are not directly effected by the Spanish bailout, we could be in future, through the London market or the IMF.
Spain remember has a row going with Argentina over the nationalisation of Repsol’s assets in that country.
And then there’s the Falklands! Where Spain has usually supported Argentina.
There are reasons to believe that relations between Spain and the UK are going to be difficult in the next few months.
If Bankia Were a Used Car, It Would be a “Cut and Shut”
The heading of this post has just been said by BBC financial correspondent on the BBC Radio 5. I like it. He also said that Bankia needs €19billion immediately and the Spanish banks together need €100billion.
I would move everything out of Santander now, as when this Spanish idiocy goes bang, it will be very difficult, as those left in this game of Spanish musical chairs will be exiting at the same time.
But of course banking with a company headquartered outside the UK, breaks one of my golden rules of banking. Or in fact my late friend’s rules.
Spanish Banks Get a Downgrade
It is being reported that Moody’s have downgraded the ratings they give to Spanish banks.
My late great friend, David, who rose to the top of a major clearing bank, had some rules about the bank you used.
One was never put your money in a bank, with its headquarters outside of the UK. He said, you haven’t got the same protection.
Councils Told Not to Bank at Santander
Kent County Council have moved their money away from Santander according to this report. The Times is also reporting that councils should move money away from Spanish banks.
Probably this advice should be heeded by us all.
Pioz is the Most Indebted Village in Spain
Pioz in Guadalajara has just 3,000 inhabitants, but the village has run up debts of €16,000,000 and at the current repayment rate will take over 7,000 years to pay the debts back. It all stems from a previous administration that built an elaborate water purification plant.
And then there was the €150,000,000 airport at Castellon near Valencia, which never attracted a single aircraft.
No wonder Spain and Spanish banks are in trouble!
Spanish Football is Built on Debt
I know there’s a lot of debt in British football and some clubs such as Portsmouth and Rangers seem to have succumbed to the problems. But this is nothing compared to the tax debts of the leading Spanish clubs, as detailed in this report from AFP.
I thought UEFA had a series of fair-play rules, that British clubs adhere to. It would appear that Spanish practices are different. Here’s just one phrase from the report.
But the latest figure to hit the headlines in Spain is the 752 million euros that Spain’s elite clubs owe to the tax man at a time when more than five million are unemployed and the government is asking citizens for more sacrifices.
Even Rangers don’t owe a tenth of that to the taxman.
Is It Hire a Frog Week?
I think that the result of the French Presidential Election and the subsequent uncertainy may mean that a lot of high-grade people working in France decide to hop-on the Eurostar and get a job in England.
Personally, I am pleased I no longer own the house in Antibes, as I suspect if some of the candidates win on May 6th, I’d have a lot more taxes to pay.
I checked with my stockbroker this morning, and he said that French bonds are at least holding up, but that is not what can be said for Spanish ones.
Basques Want to Join an Independent Scotland
I can’t work out if this was a Spanish joke or not, but it is reported in today’s Times. The leader of one of their political parties has said it and has also waxed lyrical about kilts and said that Edinbrgh should replace Madrid as their capital.
Probably it’s just another way of stating the old adage – You don’t have to be mad to be the leader of a political party, but it helps.
I actually think on a day of such miserable foreign news, the story lightens everything up.
On the other hand it could be a large publicity stunt on behalf of Bilbao-based company CAF, who are building the trams for Edinburgh’s tram system and they want to get it finished and of course get paid. When it does get finished, I suspect that a mixture of Scots, Basques, paella and Scotch will be a good recipe for a party.
The Anonymous Widower 