Live News From Spain As It Happens

INTEREST rates in the Eurozone could fall to 2.5% next year, having closed August 2024 on 3.75%, according to latest research.

The recently-released report by S&P Global Ratings predicts the lower Euribor rate will come off the back of increasing growth in economies that share the common currency, particularly in Spain and France.

For 2024 as a whole, the Eurozone's GDP is expected to have grown by 0.8%, rising to 1.3% in 2025, as consumer spending and investment increases.

Weaker growth is forecast for Germany this year, but Spain and France are likely to be the main economies driving the GDP upwards, S&P finds.

Whilst inflation remains above the European Central Bank's (BCE's) target of 2%, it has reduced significantly this year, ending August on 2.2%.

Also, consumer price index inflation fell from July's 2.8% to 2.4% last month – a dramatic year-on-year difference, given that July 2023 saw it reach 5.9%.

Analysts are now becoming quietly confident of a Euribor rate cut next year, and estimate that inflation could finally reach the 2% target.

The BCE, then under Mario Draghi, dropped Eurozone interest rates into negative figures for the first time ever in February 2016 in a bid to increase consumer spending, borrowing, and strengthening the economy.

Interest would remain below zero for over six years, as inflation continued at well below the 2% target.

Global inflation in 2022 led current BCE chair Christine Lagarde to increasing the Euribor at its fastest level in history – within 10 months, it had gone from minus figures to around 4%.

This month, the BCE plans to reduce the rate to 3.5% - only the second cut so far in 2024.

Read more at thinkSPAIN.com

ANYONE who has let out or sold their property in recent years will have gone through the process of obtaining an energy-efficiency certificate – and, if you're planning to sell yours or rent it, you need to know what is involved.

But you don't necessarily have to be planning to move – homeowners who intend to stay put for now sometimes look into getting an energy-efficiency certificate to find out what they can do to improve emissions, reduce the amount they spend on electricity bills, and keep their property warmer in winter and cooler in summer.

Although it may sound like just another task to grapple with in a long list when you're planning on selling or renting your home, acquiring an energy-efficiency certificate is actually fairly simple, as explained by utility boards Iberdrola and Endesa.

Who needs an energy-efficiency certificate?

Anyone who plans to sell their property or let it to tenants – including commercial properties – whether they are brand-new or pre-owned, provided their 'useful area size' is over 50 square metres. The 'useful area size' definition means that, even if a property is larger than 50 square metres, those parts of it which are technically inaccessible or 'unavailable' – such as thick walls – do not count when measuring floor space.

Properties to let which require an energy-efficiency certificate include those due to be occupied by long-term and permanent tenants, as well as holiday homes that are available for use for at least eight months of the year.

Who doesn't need an energy-efficiency certificate?

Owners of individual properties for sale or rent with a useable floor size of less than 50 square metres are exempt.

If you bought your property brand-new and now intend to sell it or let it out, you may well already have an energy-efficiency certificate. These are now automatically issued, by law, for new builds. But if you have since upgraded your energy rating through extra works – such as adding solar panels, better insulation, or double glazing – you might want to obtain a fresh certificate to reflect its improved category.

Properties left unoccupied – and which will continue to be left unoccupied – for more than eight months of the year do not need an energy-efficiency certificate. This might be the case if, for example, you own a second home that you only intend to let to holidaymakers in July and August, and use for yourself on occasional weekends out of season.

Read more at thinkSPAIN.com