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Evictions in Spain

The crisis not only leads to unemployment, but also generates eviction. Everything is related between them. If it does not charge a salary every month, you cannot pay the mortgage or rent. Therefore, debts accumulate and you end up on the street basket-case. This is the situation of many Spanish families.

The numbers of evictions in Spain are spine-chilling. “When the bubble burst in 2008, even the most pessimistic had imagined the scene in which Spain is now: recession, more than six million unemployed and a debt in households of more than 820,000 million euros. Five years later, the magnitude of the situation is not even known. While there are no definitive numbers of evictions, the most reliable figures are those of the Registrars Association that speaks of 30,034 in 2012. An evection every 15 minutes” (Mónica Ceberio, Álvaro de Cózar, El País, en la Calle,2013)
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Due to the economic crisis, many people have come to the point of suicide for not having enough money to pay the mortgage of the house. “Evicted or unemployed, bankrupt businessman who removed the life, unemployed dumps in a psychiatric consultation…people who want to emigrate because it cannot live here.  The Spanish crisis related emotional problems increase and exacerbate the incidence of mental illness and desperate solutions…” (Blog de Sociología y Actualidad, Globemedia.com, El suicidio, primera causa de muerte en España, y sus causantes: desahucios, desempleo y pobreza”).

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According to Eures, the network created by the European Commission, while these are no official figures, and many of these cases are covered up as accidents, the case is that there is a daily death, result of economic insecurity. The General Council of the Judiciary announced that in the first quarter of 2013, 19,468 evictions were executed, so 216 per day.

In this dramatic situation, they have been proposed many changes for various platforms in defense of evictions to modify the articles related to the foreciosure process.A platform that has managed to paralyze and relocate numerous evictions is the Platform affected by the mortgage (on the bubble to the right to housing) PAH. The platform was created in 2009,  to help all families that are unable to pay the mortgage or rent. In its officialwebsite: http://www.afectadosporlahipoteca.com,it named campaigns that have launched and among them, the Stopdesahucios where are announced the number of evictions that were executed during the month.
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Unemployment in Spain

Spain is the second country behind Greece, with more unemployment in the EU and the Organization for Economic Cooperation and Development. Unemployment is a problem that occurs in all countries but the extent of unemployment in Spain is particularly high. In Spain, we have an unemployment rate of 26.7% (4,811,383 unemployed) while for example in Italy have an unemployment rate of 12.5%, Portugal 15.7%, France 10.9% and in Germany only 5.2%.

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Unemployment in Spain began in 2008 with 2,129,547 unemployed and ended with 3,128,963, representing an annual increase of 999,416 people. This year was particularly hard mainly due to the economic crisis that struck the country and caused practically a million people lost their jobs. The worst month of the year was in October with + 192,658 unemployed.

Spain Financial Crisis

From 2008 to 2013, unemployment has risen from approximately 3,128,963 to 4,811,383, ie 1,682,420 unemployed. A chilling fact that cause worries to all Spanish and every time gets worse.

Pío Moa Banga, cites several consequences of unemployment that qualifies as harmful to both, the unemployed and the population.

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  1. The most evident consequence of unemployment is declining incomes of the families affected. A situation of financial difficulty that often goes with it a deterioration of family life and self-esteem of the individual.(Pío Moa Banga, Reflexiones de un ochental)
  2. Criminality. Some people, especially young people in marginal environments, can be pushed to look outside the law, the revenues accruing to them that they can not find employment in the labor market. We talked about activities such as drug trafficking, prostitution, crime …(Pío Moa Banga, Reflexiones de un ochental)
  3. Lack of motivation in education.Many college-age youth are wary that their studies are to serve them for something tomorrow. In fact, it is known that a good portion of university graduates end up working in jobs lower than their educational qualifications, or even tasks that have nothing to do with what they studied.(Pío Moa Banga, Reflexiones de un ochental)
  4. Delay in the age of youth emancipation. The lack of work is for young people the impossibility of leave home, thus delaying their future life plans as they can be independent, get married and start a family.(Pío Moa Banga, Reflexiones de un ochental)

In Spain, with youth unemployment over 50%, it is not surprising that 2 of every 3 young people have to emigrate. Our young people are forced to build a future away.(Contraeconomy, Dos de cada tres jóvenes españoles emigra)

According to the “Report on the State of the Spanish Labor Market” by the job portal InfoJobs, “two out of three Spanish youths seeking employment abroad and one in two is willing to work outside Europe.” He adds that 65% try to find job opportunities mainly in the UK, Ireland and Germany.

A forced migration extremely counterproductive for the country. Spain is experiencing a “brain drain” and they are leaving many well-qualified people.(Contraeconomy, Dos de cada tres jóvenes españoles emigra)

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Economic crisis in Spain

The Economic Crisis began in Spain in 2007 and six years later, the situation is still deplorable. Although the latest news are good regarding to 2 years ago, unemployment is one of the variables of greatest concern continues to increased about 26%. The expectations for next year are right optimistic. The Prime Minister claimed that the Spanish economy will grow and therefore, we will soon put an end to this horrible phase and celebrate a new life full of illusion and motivation. Many people no longer believes in anything … We’ll see in two years if what they said was true.

The economic policy makers did not have capacity to deal with the situation becoming increasingly optimists as is reflected in the statements of Zapatero September 2007 and January 2008: ” Spain has entered the Champions League in the world economy” , ” Spain is able to achieve full employment.”The party was in power did not want unclog the bubble that had developed either by naivete or by their own interest and it was very difficult to slow.

The political posts were optimistic without thinking whether it could prevent the housing bubble. There was a demand so great that people kept buying as an investment, which then turned out a failure since it came to a time when everything fell and it demonstrated the overvalued that it had acquired the property.

First, the monetary policy followed by the European Central Bank, since 2001, which kept the reference interest rate at very low levels for the cyclical (PANOECONOMICUS,2011,3,PP.309-328, Francisco Carballo-Cruz), since the other European countries they had a sustainable development to not convenient for have high in interest rates.

The Bank of Spain cautioned that figures were unsustainable and knew that the growth would fall, but the politicians chose to ignore because that supposed to make a change in the economic structure and slow down the growth.(PANOECONOMICUS,2011,3,PP.309-328, Francisco Carballo-Cruz).

Banks were unable to support the economy and gave the increase of the bubble, which could have been avoided:

  1. Improving information on housing prices
  2. Reducing the tax relief housing on income tax: in Spain, having to pay for housing deducts the income statement, which incentives to buying. Therefore if tax relief is reduced, the excessive buying housing is braked.
  3. Increase the pressure inspector on businesses and real-estate agreements.

During Zapatero’s government they took place some economic policy measures in order to revive the economy. It created the Plan E which was considered to give economic support to businesses and families, encourage employment and modernize the economy but this plan financed by public funds came at the hands of public administrations city councils, those who decided about some public works to invest money.

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Tourism continues to be the most valued economic variable and the only sector that relies certain stability now and the end of the year. Tourism is a very good source of income since we are a tourist country. One of the advantages which have some countries in Europe are that nowadays despite of not be having the best time, there is business confidence, this is one of the things that we need in order for the tourism sector move on .This means that although they are not earning much money, they are confident that our company has a future.This situation is what makes them consume in the tourism sector.

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Respondents ensured that the beginning of the recovery from the crisis will be late 2014 or even after 2015. If this were true, it would be seven years of crisis.

The worst sectors in production and billing: are construction and contracts. However, the indicator with worst performing has, is investment. From the business point of view nobody runs the risk to buy machinery because the bank will not finance and you do not trust that you can get the money you have invested in the machinery. A few years ago, people could buy a house as an investment, nowadays nobody runs the risk since there is sufficient demand for rental.

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