Despite turmoil in the European market with deficits threatening to drag governments under everywhere, the Spanish are focusing on a competent austerity budget that is likely to see them through. Meanwhile, the sun doesn’t stop shining and outside investment is as interested as ever in enjoying the many luxuries the country offers (step one: taking holiday cottage insurance perhaps). The deputy finance officers was recently quoted as saying that Spain was ‘not Greece, is not Ireland and never will be’ knowingly nudging the ailing economies of two Eurozone nations that have already given the Spanish cause for concern.
With a strategy of issuing bonds on international markets, Spain has been attempting to – and succeeding at – dodging the potentially poisonous situation in the Eurozone. This action has brought the economy alongside that of Italy, which is similarly healthy (and sunny too!)
It’s unsurprising to see this attitude to global finance from a nation so dependent on foreign money: the Spanish tourism industry is the second largest in the world, and about 5% of the country’s GDP. If you’ve ever been looking for a holiday home, now is a great time to look into it and insurance for holiday homes if it’s been on your mind for some time. Whereas the financial crisis has been about banking everywhere else, Spain has had tight controls on lending for years and the crash for them manifested itself the property market.
The picture is therefore a happy one for UK residents looking for a sunny second property. The competency of Spanish finance is hard for a UK citizen to quibble with: Santander basically bought up what little of the UK’s disgraced banking sector the Government couldn’t afford to take on. And with Spanish property in disarray, the financial climate in Spain must seem as appealing as the literal climate. That dream home on the sunny shores of Spain may just be with your grasp, so grab your house insurance Spain soon.
