SPAIN: Venezuelan Leader in Spain & more – 12th Sep 2024

Buenos días from Gracia! This is the Rorshok Spain Update from the 12th of September twenty twenty-four. A quick summary of what's going down in Spain.

Starting things off this week, Edmundo González, the Venezuelan opposition leader, has fled to Spain after being accused of political crimes by President Nicolás Maduro’s government.

González, whose opposition data suggests a clear victory in Venezuela's July election, requested asylum after landing at Madrid's Torrejón de Ardoz military base on Monday, the 9th.

His departure follows a month in hiding amid growing threats and a warrant for his arrest. The results of the elections favoring Maduro have raised eyebrows, with allegations of fixed elections and voting fraud.

Pedro Sánchez, the President of Spain, called González a hero, with many international bodies, including the EU, denouncing the political persecution and continuing to dispute Maduro's election victory.

Closer to home now, as a recent study by Spanish think-tank FUNCAS reveals that the country needs to build 200,000 homes annually to meet current demand.

Since twenty twenty-one, only around 100,000 new homes have been built each year, far short of yearly targets. The housing shortage, driven by a growing demand for second homes and a lack of suitable vacant properties, has caused prices to rise, particularly affecting young people.

FUNCAS calls for increased construction and urban planning reforms, and the study warns that inadequate public investment could disrupt the market further.

The rental market also faces challenges, with supply dropping and prices soaring.

In education news, the Partido Popular, or PP, plans to modify school curriculums in its governed regions to remove ideological content imposed by the national government that they say is more focused on feelings than on capabilities. However, the national government is responsible only for 50% of the content — the responsibility also lies with the regional governments.

Ester Muñoz, the PP's Education Secretary, announced the changes, citing a decline in educational quality and a need for expert-driven content.

The PP aims to restore subject elements such as cross multiplication, square roots, and Roman numerals —which the party says the Socialist government has eliminated from the curriculum.

Muñoz also criticized the back-to-school season, calling on President Sánchez to double financial aid for textbooks and school supplies.

To learn more about the Spanish education system, check out an in-depth article written by Study In Spanish! Link in the show notes!

While the PP fights for funding in one area of education, the government announced this week that it will pledge over 32 million euros to create nearly 3,000 new public preschools in seven regions.

Aragón, Asturias, Castilla y León, the Comunidad Valenciana, Madrid, and Murcia will receive part of this total, which is aimed at expanding early childhood education for children aged zero to three.

The funds come from a redistribution of just over 100 million euros returned by Andalucía, which failed to use its allocated funds to create the planned educational sites of its own

Since twenty twenty-one, more than 600 million euros have been allocated to establish over 60,000 new sites in early childhood education across Spain.

Moving on, Spanish wages are outpacing inflation, though their growth is slowing.

According to the National Statistics Institute, in the second quarter of twenty twenty-four, both wages and consumer prices increased by 3% compared to last year. This marks the slowest wage growth in nearly two years.

Despite the slowdown, rising wages, expected interest rate cuts, and employment growth are expected to boost household consumption and support Spain’s GDP growth.

While wages keep up with inflation, fuel prices are going down. Fuel prices in Spain have hit new annual lows, with petrol and diesel costs significantly decreasing since September twenty twenty-three.

Petrol prices have dropped nearly 15%, and diesel just over 1%. A fifty-five-liter petrol tank now costs around eighty-five euros to fill, approximately ten euros cheaper than the same time last year, while diesel costs around seventy-eight euros, eleven less than in September twenty twenty-three.

Current prices are even lower than before the Russian invasion of Ukraine in twenty twenty-two, which saw gas prices soar across Europe. Diesel has remained cheaper than petrol for eighteen months, and Spain’s fuel prices are below the EU and Eurozone averages.

Next up, the wealth tax, introduced in late twenty twenty-two, has been sparking concerns among high-net-worth individuals who are considering leaving the country.

The tax targets citizens with net wealth over 3 million euros, with rates up to 3%. However, according to the British publication the Telegraph, the tax raised just over 600 million euros in twenty twenty-two, a low amount compared to expectations.

Critics argue that wealth taxes often fail to generate significant revenue, are costly to enforce, and may drive wealthy individuals to relocate.

From punishing millionaires to successfully managing over-tourism.

UK news outlet The Express reported this week that Spain's Cíes Islands have successfully overturned its over-tourism problem with daily visitor caps since twenty seventeen—and the numbers are looking solid.

For the past seven years, only 1,800 tourists could visit the islands per day in peak season (from May to September), dropping to 450 in the off-season. Tourists also need to book ahead, obtain a QR code from the regional government website, and pay for the ferry in advance. The system's been praised for protecting the islands, but critics say broader fixes are needed for issues like housing and jobs elsewhere, especially in cities.

Since Anti-tourism protests have defined the summer of twenty twenty-four, regional governments are looking to places like the Cíes Islands for inspiration.

In other news, President Sánchez embarked on a visit to China to discuss trade deals and restrictions.

He arrived in Beijing on Monday, the 9th, and addressed a forum of Chinese and Spanish business leaders, highlighting that commercial tensions harm all sides of the discussions.

He urged for a negotiated solution within the World Trade Organization framework, stressing constructive dialogue between China and Europe. Sánchez also promoted cooperation in high-tech sectors and encouraged Chinese investment in Spain to bolster economic ties.

Following Sánchez’s visit, Envision Energy, a Chinese multinational corporation, announced on Tuesday the 9th, a one billion euro investment in Spain's renewable energy sector, featuring Europe's first integrated green hydrogen Net Zero industrial park.

The investment is set to create up to 1,000 jobs, with construction beginning in early twenty twenty-six in partnership with the Spanish government and industry leaders.

There's good news for music this week. Spain's largest trade association, PROMUSICAE, reports that the peninsula saw significant growth in twenty twenty-four, with music revenue reaching nearly 250 million euros—a 16% increase from twenty twenty-three.

PROMUSICAE says that digital formats (streaming) dominate these figures, representing just under 90% of total revenue. Music streaming is the largest driver, representing around 80% of the market.

Another week, another festival—this time for film buffs! The 72nd Edition of the San Sebastián International Film Festival will be held between the 20th and the 28th in the capital of the Guipuzcoa province. It's one of Spain's most prestigious annual cinematic events and has been going on since nineteen fifty-three.

Ending with another festival, from the 14th to the 24th, Tarragona will host its annual Santa Tecla festival celebrating the city's patron saint.

Highlights include the traditional procession of the Braç de Santa Tecla, a relic kept in the city, and the performance of the Retaule de Santa Tecla, a typical rendition of traditional Sardana songs originally by musical group Cobla La Principal de la Bisbal.

For the foodies, there are a few specialties to try, including the Braç de Santa Tecla cake, a roll-shaped cake filled with cream, and espineta amb cargols — a stew containing snails and tuna neck.

And that's it for this week!

Thanks for tuning into the Rorshok Spain Update. You can connect with us on social media as @RorshokSpain on Twitter and @rorshok.spain on Instagram.

¡Hasta la próxima!