Europe Press 27/03/2009

Solbes stated that the measures adopted today will promote economic recovery and employment

Denies new tax cuts because Spain has already made an effort of 5% of GDP in fiscal

The second vice president and minister of Economy and Finance, Pedro Solbes, said today that the Government intended to set the economic measures adopted by the reactivation of the economy and employment, and that improves the coverage of risks of certain enterprises, down payment interest is encouraged operations R & D + i and amending the Act, which has been shown, he said, "rather rigid" in a time of crisis such as this.

Along with these measures of "immediate," Solbes stressed that the government has also thought of the lake time and therefore has approved the implementation of the directive of the internal market in services, and has written to public information that modifies the preliminary 46 state laws to implement the directive.

Pivots on the idea that these laws, Solbes said at the press conference following the meeting of the Council of Ministers, is to eliminate prior authorizations in general and pass a "custom" Spanish to ask permission for everything. "

Solbes, who stressed that this legislation will create 200,000 jobs and add up to more than one percentage point to GDP growth, indicated that one of the most significant changes is the new regulation of professional bodies, which have often gone further and this is not compatible with competition rules. " Hence, the changes on advertising, price quotations or elimination of restrictions on the simultaneous exercise of two or more professions.

As for the reinsurance of credit insurance operations, the minister noted that some insurance companies, the excess risk, do not cover certain credit insurance and, therefore, the Government takes the risk of such insurance to incentive. Consortium will be Compensation Insurance who take the role of guarantor.

He also referred to the lowering of the legal interest rate of money and delay, and noted that these reductions (from 5.5% to 4% and the legal interest of 7% to 5% of the delay), citizens defer payment of their debts will save around 30% of the interest they have paid so far.

The deduction for R & D in the corporate income tax, said that this incentive has worked "efficiently" in this period and given the budgetary behavior of this concept in recent years, said that the Government believes should be suppress their elimination in 2012 and to extend the deduction "indefinitely."

For its part, the first vice president, Maria Teresa Fernandez de la Vega, said that the service sector in Spain, almost 67% of GDP, and therefore stated that a sector is "crucial" for growth, competitiveness and country's progress. "With the services directive Spain today is a step toward creating a genuine internal market, introducing more freedom in markets and removing barriers anachronistic," he said.

NO TAX MARGIN

Furthermore Solbes admitted that Spain does not have room for additional efforts against the crisis from a fiscal point of view.

"This does not mean you do not have to do other things," Solbes said at the press conference after the Council of Ministers, where he recalled that the Spanish effort to overcome the fiscal adjustment has been almost five percentage points of GDP.

He explained that this effort, the result of the operation of automatic stabilizers and the implementation of measures to address adjustment raised the general government deficit is "significantly above" 3% throughout the year.

"In these conditions, I and my other colleagues in the euro area we have considered that no new plans for fiscal stimulus," he said.

The vice president admitted that the U.S. economic the United Kingdom continue to insist on the need to undertake further fiscal impulses to stimulate the economy, but recalled that the situation of these two countries is "very different" to the euro zone.

In this sense, Solbes said that both the U.S. and United Kingdom have monetary policies and exchange rates themselves, which makes their situation very different from the euro zone, where the fiscal is one of the basic elements of balance.

 

Five Days 28/03/2009

The Executive of the new plan focuses on encouraging the liberalization of services
§ The Executive Board yesterday approved a new package of measures to boost economic activity and employment recovery.
§ Among the most prominent is the transposition of the European Services Directive, which, according to his calculations, a point is added to GDP growth and create 200,000 jobs.
Carlos Molina - Madrid

Work and wealth in Spain are heavily dependent on services. This activity generates two thirds of employment and GDP of a sector that is experiencing the issues of the crisis. In January, the turnover and employment in the five branches in it (tourism, transport, trade, information technology and business services) reached minimum five years, according to INE.

For that reason, the financial vice president, Pedro Solbes, stressed Friday the importance of transposing the European directive on services, which will, in his view, to boost the sector, as it will create 200,000 jobs in three years and added more than one point of GDP growth over the long term. 'It is one of the most important structural reform of the legislature, "Solbes said, who suggested as the main development permits for the removal of an exercise activity, which will be replaced by commercial arrangements. For example, to open a plumbing business, a business took 240 days to obtain the authorization, while a travel agency to provide a minimum capital required as a guarantee. All those requirements disappear and try to overcome, according to Solbes, "the Spanish custom of asking permission for everything.

In fact, the bill provides that only requirements may be imposed on freedom to provide services when they are properly justified on public health, environmental protection, public order or public security, are provided and are not discriminatory on grounds of nationality or address. The elimination of prior authorization, however, will not occur in commercial distribution, as the reform of the law on internal trade, which runs parallel to the transposition of the directive and to negotiate directly with the Ministry of Industry, is run so slow at coming up with the refusal of some communities.

In his first proposal, called for a deep industry liberalization, thus eliminating the requirement of a second license for larger surfaces with more 2500 square meters, and prior authorization requirements, except for planning or environmental grounds. Some communities have argued that the second license will only be deleted when you exceed the 400 meters and require strengthening the environmental and planning requirements.

Credit insurance. 205 million for risk-sharing
The Executive will cover the risk of credit insurance through the Insurance Compensation Consortium. Given the difficulties of companies to secure their loans, the government injected 205 million euros for possible defaults and expected that the number of operations covered can reach 40,000 million. The consortium signed an agreement which will cover risks from January 1, 2009, with each entity that is affixed on a voluntary basis.

Emissions. Guarantees for debt investors
The package of measures establishing a new reform that makes it more attractive investment in debt securities issued by financial institutions guaranteed by the State. In the event of a default, the investor will receive State compensation for the time to reinstate it what it is owed.

This support is enhanced with the addition of all new releases that have the backing of the state have the same rating that the Kingdom of Spain to the rating agencies.

Finance. Delay discount rate of 7% to 5%
Given the many requests arriving from the corporate world to lower interest rates for late payment, the Executive has decided to lower them from 7% to 5%. According to recent estimates of Finance, the reduction of interest on arrears will be a saving of 28.5% compared to the rates that currently citizens and businesses have to pay the tax with their delays. In the package of measures also approved the lowering of the legal interest rate of money of 5.5% to 4%.

I + D + I. The deduction is maintained
The Executive has given back and has decided to keep the deduction for R & D in the corporate tax indefinitely when its demise was planned for 2012. 'The system of support for business R & D has worked efficiently over the years and have decided to extend it indefinitely, which will have a positive impact on the outstanding investment, "Solbes said. In 2007 benefited from this aid 5657 companies, which 317 million were deducted.

Professionals. Barriers to competition
Another novelty in the transposition of the services directive refers to changes that will have to undergo professional. Including its lower fees, remove restrictions, which prevent the simultaneous pursuit of two careers, or to suggest pricing or fees. 'This will enable the professional to maintain their activity and not contrary to competition law, "Solbes said.

Other measures approved
Ports. The Council of Ministers approved the bill on Ports, days after the dock strike took place earlier this week and had a massive track. Among the points of the reform is the fact that they allow each port authority may set its own fees and that the stevedores would have to ensure that staff have in-house to cover at least 25% of days.

Housing. The Housing Ministry was authorized to sign agreements with the various regions to implement the State Plan for Housing and Rehabilitation 2009-2012. The volume was set to implement in 10,188 million euros and the number of beneficiaries has risen to one million families, according to estimates from the Executive.

Climate change. Boost to the sectors related to climate change. To this end, the Executive announced a plan to boost internationalization of these companies. The plan lays the framework that should guide the actions of government and seeks to strengthen the presence in sectors like renewable energy, helping to create an image of Spain and his business partner to a low carbon development.

The directive
Energy: four schemes are replaced by authorization prior communications.

Single point: Companies can complete the formalities in a single window and through electronic means.

Freedom of benefit: Eliminate restrictions on foreign firms wishing to provide services in Spain.

 

The Country 29/03/2009

TRIBUNE: Laboratory of ideas
The opening of retail
CARMEN ALCAIDE (Economist and former president of INE)

Continuing with the necessary structural reforms, and within those on the liberalization of markets, today I will refer specifically to the retail trade liberalization. The OECD, in its latest report refers to Spain, specifically notes the opening of the retail trade as one of the pending structural reforms. Moreover, following the Lisbon strategy, the European Commission prepared a directive for the liberalization of services. Directive 2006/123/EC of the European Parliament and the Council which requires compliance in all countries of the European Union (EU) before the end of 2009.

So far, after an attempt by the liberal known for "Boyer Law, state legislation, and especially the law of the Autonomous Communities (CC AA) has established for restrictive trade practices of large areas with the argument protect small business. The transfer of legislative powers to the autonomous communities has allowed the existence of rules and practices between the territories of Spain, breaking the unity of the market. However, as reflected in a study by the BBVA, these regulations have not benefited small businesses, but the supermarket chains medium, and since then has hurt the supermarkets, the industry, net productivity, and consumers by increasing prices.

On October 17, 2008, the Cabinet approved and submitted for public information of the preliminary draft law on free access and exercise of service activities. It is a blueprint that reflects the requirements of European directive, which includes retail. The discussion in the Spanish parliament can not deviate from what was contained in the directive, which is mandatory for all EU countries and clash with the legislation by some CC AA. Again will show the contradiction of having to suffer from European standards and abide by the same time allow the development of regional standards that contradict. Furthermore, as in other pending legislation, the Government should agree with other political parties to get the necessary votes for approval in Parliament.

Key aspects of the EU directive affecting the retail trade are the following: freedom of establishment and free exercise throughout the territory, and carried out by Spanish companies and enterprises in the EU countries, the reduction of administrative burdens, streamlining procedures, the empowerment of users and the coordination mechanisms between the different administrations.

On the principle of freedom of establishment, the new Retail must remove the current requirement of prior authorization for any type of establishment, since it is expressly forbidden by the European directive, and shall specify whether any exception in the considered in the policy. Licensing should not be automatic and may require an economic justification of the project, as currently required in practice to large surfaces in the different regulations of the CC AA.

With regard to administrative simplification, the policy encourages the elimination of procedures that are not needed and simplifying those that may have less costly alternatives. For all this we must rely on the use of new technologies to the capacity of each country. It will be very important in implementing the "single" and announced by the government of the Spanish State, but not yet implemented. In the aspect of transparency and information should be avoided unwarranted restrictions and facilitating access to information. Administrative cooperation and supervision of providers of services will be particularly important in Spain as a result of the responsibility of the various governments (state and autonomous communities).

The time to implement the EU directive, reform retail is not only proper but is indispensable and urgent, since their effects on productive investment activity, employment, productivity and inflation would extremely difficult in these times of crisis. These effects have been analyzed by several studies of international and private institutions. The OECD examined the relationship between the regulation of the market for goods and services and job creation. The European Central Bank studied the degree of negative relationship between competition and inflation. Independent reviews have examined the positive effects of liberalization on productivity, and facilitate the removal of barriers and create new investment and the resulting increase in activity and employment.

Finally, the adoption of the law will require a degree of consensus in Parliament significant that, if achieved, will add value to its implementation in terms of acceptance and retention, while complying with EU requirements.

 

Distribution Update 30/03/2009

 

Transpose the European directive of going to court

 

The draft law on free access and exercise of service activities which transposes the European standard Spanish law was passed Friday, March 27, the approval of the Council of Ministers must now pass the formality of the Cortes Generales.

 

The month of December was just the time to transpose into Spanish law the European directive of liberalization of services. The Government has already put on the table of Congress a bill to reduce the unwarranted at present.


The text consolidates the principle of freedom of establishment, and that opening them is not subject to prior authorization, as at present. However, for some activities such as retail administrative licenses may be required, provided they are not discriminatory, proportionate and justified by overriding reasons of general interest.


Generally these permits, which give communities and local councils, to be decided, will be granted for an indefinite period and shall have effect throughout the Spanish territory. For processing creates a single point, which can take advantage of the technical potential of information technologies.

 

It also consolidates the principle of free provision of services by providers established in another EU country.


According to estimates by the Executive José Luis Rodríguez Zapatero the new legal framework will promote the creation of enterprises, competition and the internationalization of small and medium enterprises. Will create between 150,000 and 200,000 jobs and produce an additional increase in GDP of around 1.2%.

 

But the implementation does not only affect the national law, the autonomous administrations also have to remove the procedures and formalities which are not needed or replaced by alternatives that are less burdensome. You have time until December 26, 2009.

 

 

 

The Truth 02/04/2009
Opinion Articles
Lord Sebastian, listen to trade
 

PEDRO MARI REIG.

 

The global economic crisis which operates in the U.S. and has been spreading like oil on every continent, with Spain cebándose in the construction sector, by exploiting the housing bubble, has made the jump into the air a theory of government the granting of licenses for the construction of shopping malls everywhere. Since the industry we have grown tired of shame that after the construction of many shopping malls and real estate business was not a response to a commercial market demand.

 

The recent announcement of Colonial, the second Spanish real estate, to sell its subsidiary Riofisa, the promoter of numerous shopping centers, unable to cope with their debt, real estate speculation evidence against the interests of developing sound commercial formats.

 

Now what? Allegations of market saturation by the private sector and unheard by the administration, with subsequent licensing to build more shopping centers, despite the saturation of the commercial strength of the data showed, was a sad and worn constantly.

 

Why have not listened to more than 800,000 SMEs in trade? While this policy has been implemented, has been destroying the urban fabric business, was slaughtered by a commercial diversity homogeneous supply of shopping centers and has been moving toward oligopolies that, as is beginning to see, limit the ability of consumer choice.

 

Indeed, free choice of consumers is sought by the European Services Directive, known as the Bolkestein directive. Directive, Minister Sebastian, which has to be adapted to our trade rules at a maximum of nine months and, according to the draft on which they are working from his Ministry, which still proves to ignore the business at the forefront of SME sector.

 

Minister, defended the business base of our economy. SMEs in this country are suffering the consequences of a devastating urban speculation that we have not caused, but we receive their credit in the form of strangulation.

 

Now all are interventions to undo what was done and to recover based on injections of public money and financial business sectors, but trade in particular has seen for a decade, the Administration has looked the other hand when needed to intervene to seek a balance between formats and ensure the sustainability of the sector.

 

During these years we have seen how the Administration bowed to the big brands with big budgets. Bread for today and hunger for tomorrow. These large real estate investments have never exceeded the contribution through taxes do SMEs and independent trade to state coffers.

 

Spanish society is mature for us not the big commercial appalled and demand that our representatives match. That's why we say we can not afford more mistakes and therefore can not be permissive to the adaptation of the services directive as being raised from his Ministry and the 2500 meters of commercial area is a regular stop for area economic base, such as the trade sector.

 

Another day we will speak of the role of autonomous and local administrations in this matter, but today, Mr. Minister, we feel obliged to say that when one falls or thousands of small business, as is the case, no RIT, no injection of public funds, but there are thousands of entrepreneurs and workers are tired of not being heard. A wise, short enough, the trade city and urban society, do not forget.