Posts Tagged ‘Spain’

Today in Tapping the Brakes… Spain Slows Down to Save on Gas

Sunday, March 13th, 2011

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(photo credit: masochismtango)

Sustainability is in again! While China tries to prevent its economy from growing out of control, Spain is slowing down for a totally different reason.

  • Uprisings in the Middle East – particularly Libya – have hit Spain in the gas tank, and transit authorities are already trying to adapt. Beginning March 7th, drivers will have to slow down from 120 to 110 kilometers per hour on most main roads.
  • Spain’s Deputy Prime Minister says the measure is extreme, and promises to change back as soon as possible. Supporters say that by saving at the pump, citizens will spend more of their money “going for tapas” and strengthening the economy.
  • According to one estimate, the new speed limit will reduce fuel costs by 15%. But Spaniards are skeptical, and some say this is just a sneaky way for the government to raise revenues by handing out more speeding tickets.

Facts & Figures

  • Spain usually imports 13% of its oil from Libya
  • Other measures in place are designed to cut total national fuel consumption by 5%
  • 110 kilometers per hour is equivalent to 68 miles per hour

Best Quote

“We are going to go a bit slower and in exchange we will consume less petrol and pay less money.” – Alfredo Perez Rubalcaba, Deputy Prime Minister

>> What do you think?

Could a small change in the speed limit be a sustainable way of reducing dependence on oil?

Strikes In Greece And Spain Indicate A Shaky Economy

Friday, July 2nd, 2010

Stress in southern Europe reaches a high as citizens protest continued economic blows.

  • Strikes raged in Greece and Spain as governments desperately tried to revitalize the tumbling Euro by cutting pension plans and public sector pay.
  • The European Central Bank, in a one year cash injection strategy to get Spanish banks back on their feet, has reported that their bailout strategy will not roll over into the following year, leaving shaky Spanish banks furious.
  • Investors fear that the rising stress caused by widespread strikes, coupled with the weak condition of the Euro, could hurt European economic recovery.

Facts & Figures

  • The Euro has been pushed to a lifetime low against the Swiss franc.
  • European shares fell to their lowest in nearly three weeks, dropping -1.7%.

Best Quote

“Sentiment appears fragile and significant downside risks remain to already pretty muted euro zone economic recovery.” – Howard Archer, Chief EuropeanEconomist, IHS Global Insight

What’s The Worst-Case Scenario For The Financial Crisis?

Saturday, April 25th, 2009

It could just start with “Sale” signs at your favorite stores. Unfortunately, Spain is getting a glimpse…

  • Several European nations – most notably Spain – are facing deflation in the wake of the global financial crisis.
  • As consumer demand continues to drop, Spanish merchants are cutting prices, salaries, and employees just to keep afloat.
  • Because Spain’s currency (the Euro) is now governed by the European Union, there is very little the Spanish government can do to control potential deflation (such as slash interest rates or devalue the national currency).

Facts & Figures

  • Spain’s unemployment rate is currently 15.5% and could reach 20% in the near future. Among workers under 25, the rate rises to 31.8%.  In comparison, the unemployment rate in the US is under 9%.
  • La Casa de la Caridad (Valencia’s main soup kitchen) expects to serve 12,000 meals to needy residents in April – three times as many as last year.
  • Since last year, wholesale prices in Japan dropped 2.2% and 8% in Germany; in the U.S., the Consumer Price Index dropped for the first time since 1955.

Best Quote

“Alarm bells are going off.  Economies can recover from deceleration, but it’s harder to recover from a deflationary situation. This could be a catastrophe for the Spanish economy.” – Lorenzo Amor, President of the Association of Autonomous Workers

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