In Spain the general election is now over and the PSOEs are in negotiation with various small parties to meet their shortfall of seven seats that would provide an overall majority. They have 169 and they need 176 since the total number of seats is 350. It is unlikely that this will be a problem for the PSOEs who can then settle down to their second four years in government. Mariano Rajoy is quoted this morning as saying that he has no intention of stepping down as leader of the main oposition party: the PPs. Hopefully, Spain and its islands will now resume a steady rate of economic growth.
Meanwhile, the war in Irak is costing the US 12 billion dollars a month an outlay that is not helping the relative strength of the dollar in the international exchanges. Since oil is priced in terms of the dollar this also has international implications.
Generally, however, the fundamentals of most of the European economies are sound. Therfore, unless we talk ourselves into a crisis, there is no valid reason why there shouldn't be an uplift in demand in the near future. Certainly, there has never been a better time to invest in property in the magical island of Tenerife.
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