Welcome to the tuSPAIN weekly review of the Spanish media. Cristina Marquez Arroyo de Camihort has selected a wide range of articles covering general news about Spain, politics, business and culture. We also invite you to view the latest news from Spain (in Spanish) at the web sites of El Pais, El Mundo, ABC and El Periodico

NEWS REVIEW
1 - 8 December, 1996

• GOVERNMENT REDUCES COMPANY TAXES
• EUROPEAN UNION APPROVES SPANISH PROPOSAL FOR CUBAN RELATIONS
• GREENPEACE ACTIVISTS ARRESTED IN BARCELONA
• TELEFONICA DIGITAL TV PARTNERS REFUSE TO SIGN
• INVESTIGATION INTO SPANISH EDUCATION
• AIRTEL AND MOVISTAR PRICE WAR
• AZNAR AFFIRMS JUSTICE REFORM
• TOOLS OF TERRORISM
• INTENSE STORMS AFFECTING HOLIDAY WEEKEND
• SEXTUPLETS DOING WELL
• SIZEABLE REDUCTION IN OPERATION WAITING LISTS
• CREDIT CARD RATES DROP
• ELECTRICITY RATES TO DROP

GOVERNMENT REDUCES COMPANY TAXES

Small companies who have a turnover of less than 250 million pesetas will have company taxes reduced from 35% to 30% and limited companies will also benefit on the tax reduction on up to 15 million pesetas of profit. The reduction will take place from the beginning of January 1997. It is estimated that the cost to the tax authorities ("Hacienda") would amount to 20.000 million pesetas but the move has been taken in order to encourage the creation of new employment.

EUROPEAN UNION APPROVES SPANISH PROPOSAL FOR CUBAN RELATIONS

The EU agreed a "common position" vis a vis future relations with Cuba, based on the initiative presented by the Spanish government. The European Ministers reaffirmed their stand of "pressure without harassment" in order to achieve the democratization of Fidel Castro's regime, a policy which differs greatly from that of the USA. However they underlined their insistence on the need for human rights and an end to political persecution on the island.

GREENPEACE ACTIVISTS ARRESTED IN BARCELONA

14 Greenpeace activists were arrested in Barcelona on Monday for trying to stop the unloading of a cargo of 45,000 tonnes of soya beans in Barcelona port. According to Greenpeace, the soya is genetically engineered by the north American multinational, Monsanto and presents a health risk. Monsanto, the seed companies and the Ministry of Health defend its sale and production by claiming that it meets all the legal and safety requirements.

TELEFONICA DIGITAL TV PARTNERS REFUSE TO SIGN

Some of the partners of the proposed digital TV network headed by Telefónica refused to sign the proposed agreement that they would be responsible for the financial viability of the project due to an increase in the proposed 20.000 million capital required, by almost double. The consortium which comprises Telefónica, RTVE, Antenna 3, Televisas and TV3, Tele Madrid, Canal 9 and TCGA disagreed over the content of the contract for over two hours. The matter was finally resolved when Juan Villalonga, President of Telefónica, accepted the exclusion of the offending clause.

INVESTIGATION INTO SPANISH EDUCATION

The Centre for Sociological Research (Centro de Investigaciones Sociológicas), otherwise known as the CIS , has conducted a survey on the Spanish education system. Its findings are that 32.8%of the student population are satisfied with the standard of teaching in University and 2.2% regard it as excellent while the standard of teaching at secondary school level is considered by 41% to be good and by 1.8% to be very good. The study was based on 2,498 young people of 18 years or over. Other results include the fact that 44% of parents want their children to become civil servants (Funcionarios), 33.1% advise their children to study for an independent profession and 12.7% would prefer their children to work in private companies.

AIRTEL AND MOVISTAR PRICE WAR

In the run up to Christmas, Movistar, mobile telephone branch of Telefónica for GSM services has announced a 13% reduction on some tariffs. Meanwhile Airtel is applying new prices of 6 pesetas less per minute, offering the user a cost of 73 or 40 pesetas per minute, depending on calling time while Telefónica's prices are 75 and 40 pesetas a minute, respectivley.

AZNAR AFFIRMS JUSTICE REFORM

Jose Maria Aznar, President of the Government, tried to halt the controversy stirred up by the President of the Congress on Friday when he proposed a parliamentary debate in order to reform the judicial system. Aznar confirmed that there would be judicial reform, as promised in his investiture speech, but that it would not be in the short-term but undertaken calmly, slowly and at the appropriate time.

TOOLS OF TERRORISM

This week a flat in Calle (Street) Doctor Fleming, Madrid, situated near the Ministry of Defence, was found to contain an arsenal of ETA (The Basque Terrorist Organisation) weapons and bomb-making equipment, details of which tuSPAIN chooses not to publicise in order to avoid the replication of such equipment for like purposes. Also found in the flat were details of the terrorist attack on President Jose Maria Aznar who, at the time of the attack, was leader of the Partido Popular, along with fingerprints of suspected ETA terrorists still at large.

INTENSE STORMS AFFECTING HOLIDAY WEEKEND

Intense storms coming in from the northwest cut links between Cantabria and Asturias and caused torrential rain and snow storms as far south as Avila. Train lines were blocked between Nava and Llanes, Gijón and Pravia and Santander and Torrelavega. Heavy rainfall of over 100 litres per square metre caused rivers to break their banks in Alava, Navarra and La Rioja. Points on the River Ebro were also affected. 19 towns in the region of León were cut off by snow and 27 in Palencia and all secondary roads in Burgos were impassable. This coincided with the impending Puente (long weekend) holiday with Friday 6th being the Día de La Constitución and Sunday 8th being the feast of the Immaculate Conception. This is a traditionally celebrated December break throughout the country which, in many cases, has been affected by the inclement weather.

SEXTUPLETS DOING WELL

Sextuplets were born to Rosario and Miguel Angel Raposo of Huelva on Thursday evening and all are reported to be doing well. Rosario, who originally expected octuplets, lost two. Miguel, who is a building labourer with sporadic employment in his home town said that he did not want to contemplate his work prospects at the moment, but the Spanish government assured the couple of its support.

SIZEABLE REDUCTION IN OPERATION WAITING LISTS

In July 1996 there was a national operating waiting list of 53,822 and, according to the Ministry of Health, there now remain only 11, 679 patients awaiting operations up until 31 December if the Government is to fulfil its promise. The bulk of cases outstanding are for knee and hip replacements and in the case of Toledo, Valledolid and Madrid, the problem is one of over demand, given existing resources. However, the Ministry is hopeful that it will reach the Government's target, give or take a few cases.

CREDIT CARD RATES DROP

Monthly credit repayments by credit card, instead of via your bank account, could soon become the cheaper option as some banks and savings banks have decided to reduce interest rates on repayments via credit cards. At the moment rates vary from 17% to 26% annually but, according to bank sources, new rates will be reduced by three to five points. To date Argentaria, Banco Popular, Banco Santander, Caja Navarra, Sindibank, Caixa Penedes, and Caja España have decided to reduce their rates.

ELECTRICITY RATES TO DROP

The price of electricity will drop in 1997 and companies will be able to choose their supplier. Reductions of 3% in 1997, 2% in 1998 and 1% in 1999, 2000 and 2001 are planned. The domestic consumer will benefit less, i.e., by approximately 1% per year. From 1998 foreign companies will be able to sell electricity in Spain and in the same year main consumers will be able to choose their supplier. In the year 2000 this option will be extended to small and medium-sized companies.