This Sunday, the French will vote in round 1 of the presidential elections. The anti-European proposals of most candidates are of concern to global economic players, as revealed by the slight rebound in the French public debt risk premium. Macroeconomic indicators do not appear to justify the social unrest suggested by the major strength of the intention to vote for extreme political options. Against this backdrop, the EU once again holds its breath because without France there is no Europe.
After the lengthy period experienced by the Spanish economy since the end of 2013 with a moderate and even negative performance of prices, with a fall in prices of 1.1% posted in April 2016, the year-on-year Consumer Price Index (CPI) in January and in February was 3%, which implied a significant acceleration in price increases. This is largely due to the energy component of the CPI, which will gradually moderate as the year progresses, closing 2017 with average inflation of 2.2, according to estimates by Equipo Económico. This return of inflation, however, has not been risk free.
The real estate market in Spain is in a bullish mood and continues steadily on the path of recovery and sustainable growth, after having undergone an important adjustment in the last decade, both in terms of volume and prices. Thus, during the past year, home sales experienced growth of 13.6% to attain 403,866 transactions, making three consecutive years of upward trend. The challenge facing the real estate sector is, in any case, twofold: stabilizing the sector and avoiding the mistakes and excesses committed in the past. Therefore, recovery must be prudent, sustained and gradual throughout 2017.
New doctrine of the Directorate General for Registers and Notaries that states that the power of the Board of Directors to appoint Directors expires or not depending on the agenda of the previous Boards of Directors.
Since the release of the ruling issued on February the 16th, not yet published in the BOE, where the Constitutional Court declared several key provisions of the Local Tax on Property Sales of Guipúzcoa void, there have been numerous reactions in the media. Until the full written judgment is published its reach and consequences of its applications cannot be appropriately assessed. We will then further comment on that.