Majorca Property News

Mallorca Real Estate: New package of measures against the crisis in Mallorca

In addition to employment and training programs, announces Balearic Premier Antich also help for mortgage payers
Households in financial difficulties in Majorca, the rates for their mortgage can not pay, will receive assistance from the government. The Balearic Minister Francesc Antich (PSOE) announced on Tuesday (22.9.) In his State of the Autonomous Region with a comprehensive package, providing for the deferral of the mortgage over a period of three years. These will shortly an agreement between government and the savings will be signed on the Balearic Islands.

Antich also announced the provision of further 13.5 million euros, around 1,700 unemployed people who previously received no government assistance to help with jobs. They will perform maintenance work and attend training courses. Also planned is a program called "Second Chance" for the promotion of skills training. Young people should eat in a day in addition to a part-time job in continuing education claim and been given a basic salary paid. Antich also announced low-interest loans for training.
Above all, structural problems are to blame, that purchasing power has declined significantly
The purchasing power is significantly in Majorca Spain is slipped in comparison. For this result, a study by the Economic Research Center, CRE is the Balearic Islands University, and the savings bank Sa Nostra. Possessed the Balearic Islands residents mid-90s had the highest purchasing power per capita in Spain, the value is now 2.1 percent below the average of Spain is.

The reasons in addition to the current economic crisis and the structural problems of the economy in Mallorca are called. In recent years, is particularly in tourism and construction to put on a very cheap and unskilled labor has been. Furthermore, investments were channeled into construction projects rather than unilaterally in new technologies. Was taken into account in the calculation of purchasing power, also the relatively high price level in Mallorca.

The Economic Research Institute is now assuming that the GDP will shrink in the Balearic Islands this year by a total of 1.3 percent. Even if the Balearic economy of the crisis have so far survived relatively well, according to her assessment of the Institute's structural problems still make a very hard time.