Business

At the end of 2011 there were 614,244 people registered as unemployed in Catalonia, 9.17% more than a year ago. However, unemployment dropped in December by 1,425 people, after it stabilised in November, leaving September and October as the worst months of the year. In stark contrast to Catalonia, the rest of Spain experienced an increase in unemployment in December and 2011 ended with 4,422,359 people signing on the register, 7.86% more than at the end of 2010.

Car sales drastically decreased last year, with the only exception being luxury vehicles. Less than 120,000 cars were sold in Catalonia, a figure similar to that of 1993. In Spain as a whole, car sales fell by 17.7%.

The current authority of five cruise ship terminals at the Port of Barcelona will manage the Asian terminal from 2012. The new Singapore terminal will handle the biggest cruises in Southeast Asia, with ships up to 300 metres long and with a capacity of 6,000 passengers

Despite a 4.6% reduction in revenue, the Finance Department has been able to cut spending by €283 million when compared to 2010. The government had a deficit of €3.798 billion in the eleventh month of the year, equivalent to 1.9% of GDP. The aim of the Catalan Government is to close 2011 with a 2.66% budget deficit.

Prices have increased by 3% over the past 12 months. This represents a fall in the annual inflation rate compared to that registered in October (3.1%). In Spain as a whole, November’s annual inflation rate was set at 2.9%. The decrease in the price of medication and fuel is behind the slight annual price reduction. However, in Catalonia the monthly inflation rate increased in November by 0.4% compared to those registered in October, mainly due to an increase in the price of clothes.

Catalan CaixaBank (La Caixa's private bank) will need €630 million while Banco Santander will be the bank with the highest capital requirement with €15.3 billion euros. The European Bank Authority (EBA) has tightened the core capital requirements and increased the limit up to 9% which forces European Union banks to recapitalise with €114.685 billion.

Discouraging hotel occupancy rates and low commercial trade during this year’s Puríssima holiday clearly display the effects of the financial crisis in Catalonia and the whole of Spain. The Catalan tourism sector senses that a change has taken place in the profile of visitors to the territory. They generally come from nearby areas, look for offers on the Internet and wait until the last minute to make reservations.

The wine sector foresees an increase of cava and wine consumption in Spain and Catalonia, as well as in the foreign market, during the upcoming Christmas holidays. The price adjustment, one of the measures used to fight the financial crisis, will help to sell one million more bottles compared to the same period last year, however producers predict purchases to be last minute.

With this operation, the Catalan Banc Sabadell becomes Spain’s fifth largest banking group. The Bank of Spain has decided to accept Banc Sabadell’s offer to purchase the CAM, a savings bank that was rescued and restructured. Banc Sabadell buys CAM after the savings bank completed a €5.25 billion regularisation process to balance its books. Banc Sabadell will take on 20% of the expected losses over the next ten years from CAM’s real estate properties.

IESE has been ranked the fourth best business school in Europe in 2011 and ESADE the seventh. Both Catalan education centres have improved their positions since last year’s FT ranking.

With a marginal increase of 111 people, unemployment stabilised last month. The Catalan Government believes the stagnation in the unemployment figures corresponds to the first effects of its action plan launched at the end of October. In Spain, unemployment increased by 59,536 people at the end of November. The latest data set a new historical record for unemployment in both Catalonia and Spain.

British skiers are able to access the Catalan Pyrenees as of December with direct flights to Lleida Airport. The Spanish Government has authorised the arrival and departure of non-Schengen flights, coming from the likes of the United Kingdom and Russia. However, the authorisation’s delay forced a Russian tour operator to cancel the flights for this season and postpone them until next year.

The Catalan capital is hosting the first edition of the ‘SmartCity Expo & World Congress’, which brings together more than 9,000 professionals to discuss interaction between new technologies, urban planning and citizen welfare. In addition, “the father” of electric cars in Asia, Professor Chan, stated that Barcelona has the “great potential” to become the electric car’s “open window to the world”. Last week, the Mayor of Barcelona, Xavier Trias, participated in the 10th Metropolis World Congress held in Brazil, where he met with Cisco Systems Vice President to build an innovation centre focused on smart cities in the Catalan capital.

The Catalan Government has signed an agreement with the main trade unions and business association to foster “negotiated flexibility” within the labour market. The aim is to provide companies with a greater flexibility framework while securing jobs. The President of the Catalan Government, Artur Mas, suggested the new Spanish Government follow Catalonia’s example of reaching an agreement with the social agents to improve the labour market.

The Barcelona-based airline’s operational benefit reached almost €61 million, which represents a 2% increase compared to the same period last year. Despite the oil price increases, the company maintains its benefits thanks to the high occupancy rate of its flights (more than 80%) and the activity at its international bases.