All Europe has to go back to basics, retrench and sort out all the bank debt problems, before there is any chance of a recovery
In UK that is in place and it will still be difficult…recovery starts circa 2015!
To bring back UK and northern European buyers of holiday homes, which is important to the Spanish economy, they have to first ‘deal with the outstanding old problems’ the main one is ‘generic bank guarantees which the Spanish Banks did not issue in compliance with the law’ for those developments not completed
The illegal [!] builds are being sorted albeit slowly!
The Spanish banks have made ‘provisions in their bad debts’ for these liabilities-because they have to, including interest and legal cost-they are international banks !
When CAM bank was put up for sale, Bank of Spain would have made sure that ‘generic bank guarantees’ from CAM and the’ buyers’ were all provided for in the debts
Bank of Spain knows full well the Spanish Law in respect of ‘generic BG’s’!
But as everywhere Banks will not ‘pay up and settle’ until it suits themselves -applies in UK with recent HSBC liability settlement
CDS being the prime location in Southern Spain will no doubt be the first to come out of the recession but not until this generic BG liability’ is settled
Now if there was the same situation in USA and now in UK there would be ‘ class actions over generic bank guarantees’ and the ‘lawyers ‘would be just waiting for a ‘ big fee pay out’!!!!!
Perhaps one of the consequences of the recession in Spain is that ‘ the Spanish lawyers will get real and modern’!!!!!!!!
Just a view supported I think by recent ‘court decisions ‘reported on EOS