Posts Tagged ‘Spain’

German economy fuelled by nearly one million immigrants in 2012

May 9, 2013

Figures reported in the German newspaper Die Zeit give an interesting insight into immigration in Europe’s most powerful economy. Massive immigration is compensating the demographic effects of a falling birth rate. Key points:

965,908 foreigners immigrated into Germany in 2012, mostly from Poland, Romania, Bulgaria and also southern European countries such as Italy, Spain, Portugal and Greece, which have been hard hit by their local banking crises. That’s the equivalent of the population of Cologne.

However 578,759 foreigners also left Germany, leaving net immigration of 387,149.

Turks used to flood into Germany, but last year more Turks left Germany than entered, since the thriving Turkish economy offers opportunities at home. Immigration from Islamic countries has become insignificant.

Among German nationals, more left the country than returned.

Because of the declining birth rate, Germany needs net immigration of between 250,000 and 400,000 yearly in order to prevent the population from declining, which would depress economic growth and lead to an ageing population. 200,000 more people die in Germany than are born.

The moral, say Die Zeit, is that this huge immigration is beneficial despite resulting social strains, and Germany should do more to make immigrants welcome.

Meanwhile, in Britain, new legislation is under preparation to make it harder for foreigners to immigrate. We shall see which policy is right …

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Northern Europe may be dull, but it’s economically competitive – survey

September 6, 2012

Northern Europe may not fire the imagination, but five countries in that region are in the top 10 worldwide measured by economic competitiveness, according to the World Economic Forum (WEF). They are Finland, Sweden, the Netherlands, Germany and the UK.

Southern European countries, struggling to cope in the eurozone, languish far back (Spain 36th), but are stabilising their positions due to austerity measures, says the WEF’s latest survey.

In Asia, Singapore, Hong Kong, Japan and Taiwan are the top 20. China may be a powerhouse but competitively it is back in 29th place.

Top of the class, for the 4th consecutive year is Switzerland. This is what the WEF likes there:

– flexible labour market
– R & D
– protection of intellectual property
– education and training
– transparent public institutions
– rule of law
– economic stability

Credit Suisse has just forecast that after growth of 0.5% this year, Switzerland’s economy will grow strongly again next year.

The moral? Perhaps it’s that you get on well if you are solid and hard-working, but not necessarily hugely inspiring.

Scorched earth in Madrid – and worse to come

June 16, 2012

The crisis has knocked the stuffing out of Madrid, not so long ago one of Europe’s most vibrant capitals. This is what I noticed on my visit this week:

– At a time of rapidly rising unemployment, metro fares have gone up substantially.

– Subsidies for the arts have dried up almost completely. At the Casa Encendida cultural centre, an annual festival held for 10 years has just taken place for the last time.

– The bottom has fallen out of Spain’s thriving cinema market: this spring only two films were being made at the main Alicante film studios, compared with a dozen a year ago.

– Artists who had flocked to Madrid from all over Latin America are returning home. Other immigrants are doing likewise.

– At the airport’s spanking new Terminal 4, passengers are few and far between in its vast empty spaces.

– Banks which the European Union is helping to write down their dud property loans are shrinking the balance sheets. So mortgages are suddenly scarce.

– Over-heated Madrid property prices remain unrealistically high. Few sales take place, and when they do, it is an average of 23% below asking prices. Further falls seem inevitable.

– Restaurants are expensive and losing guests. Young people meet at each other’s homes instead of at tapas bars. With the euro, Spain could not devalue to remain competitive, so restaurants complacently allowed their value for money to erode. Few seem to realise the threat to their survival.

Instead of an excited buzz, Madrid is characterised by worried looks, penny-pinching, abandonment of projects, lowered expectations and packed up bags. Where once it was fun, now it is serious.

Madrid has gone quiet. That’s how bad it is – and it could well get worse.


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