Government bail out for the Canary Islands ?

[fifi]

The Canarian government appears to have done a U-turn over whether it will seek assistance from a special fund to help it pay its bills.

Having initially said the region's finances were solid enough not to need the bail-out, finance minister Javier González Ortiz now says the government will study the conditions of the so-called 'liquidity loan' to see whether it might be an appropriate course of action. 'We have not said either Yes or No yet and are waiting for answers to questions submitted to Madrid' said González Ortiz yesterday. Sources at the ministry say the Canaries need to cover 533 million euros in debt issuance by the end of the year and may require help.

Island Connections article.

[Voldermort]

Which is why they can no longer pay subsidies to get the airlines to fly to the Canaries. I think the whole of Spain will need a massive bail out very shortly, the markets are losing patience. A lot of the mainland authorities owe billions of euros for health care and drugs with suppliers refusing to let them have any more. Sadly set to get much worse

[fifi]

Do you not think that  it makes sense to pay  the airlines around €6.50 per head to bring Tourists to the Island Valdemort? Ok, I do think  that the last contract was slightly flawed in that it provided a loophole for Ryanair and other low cost airlines  to over exploit the part  which allowed them extra incentives if they continued increasing  passenger numbers and so it got too expensive because they provided more routes than were expected ....but  they cut back on them. With the tax increases on everything surely the Government  will recoup that amount. I just had a look at the new IVA rates for September 1st and the increase for Tourist attractions is colossal. It is going up from 8 %to 21%  Then there is the increase in airport taxes etc etc If passenger numbers decrease things will be a lot worse I think.


With regard to healthcare on the Island...... I read recently  that the emergency helicopter service (currently two) was to be cut to one, despite the fact that  the demand for the service has increased  by (from memory) 35% in the last year. Fuerteventuras hospital can not provide complete care. It does not have enough facilities or Specialists. Immediate  diagnosis and care is crucial for stroke victims and many other patients and  a trip to Gran Canaria can not always be put on the long finger. It is a shame .

I was just reading about the Pharmacies in Tenerife this morning in Diario de Avisos. Its shocking.

[Voldermort]

Hi Fifi

  Yes I take your point, tourism IS the lifeblood of the Canaries and in the good times the subsidies were a way forward even necessary indeed , but increasingly the financial strings are being pulled by outside forces(Germany for one) and this is one thing, they at least, will happily can. I have more knowledge of the mainland (Andalucia) albeit from a Gibraltar  perspective.

      The healthcare issue is getting more desperate weekly, Madrid is making big cuts in this area especially with private healthcare making a massive come back on the mainland. The new rules just announced means you wont get residence unless you can prove you have private medical cover. Which will again reduce the number of `early retirees` to Spain and therefore less people looking to buy property and invest.

  I sometimes wonder, if the Canaries being so far south, are a case of out of sight and out of mind as far as Madrid is concerned with Fuerte at the bottom of a very long queue. Mind you the municipal employees in La Linea havent been paid for the last year and this years Feria/Fiesta had to be covered by the Guardia Civil as the `Local` refused to attend.

    Where will it end???...................answers on a postcard please

Best regards

[fifi]

Hi Voldemort.....who knows indeed? Paulino Rivero seems to think that the Canary Islands deserve special treatment I think.

How was life in Andalucia? I have a friend who may be moving there in the near future.