MARBELLA CLUB

The economic disaster that heavily indebted Spain has found itself in is clearly a consequence of Spain joining the euro, insists economist Dr. Manuel Balmaseda. When Spain joined the euro, the EU Central Bank settled overly low interest rates, resulting in Spain receiving “enormous amounts of credit which increased Spanish indebtedness, particularly foreign”. Cheap money created financial bubbles, for instance in real estate. When the 2008 economic crisis came, the bubbles burst, many companies went bankrupt and the whole overheated economy blew up, explains the professor. Madrid now needs more flexibility to curb deficit as the EU introduces new rules on budget discipline. Spain appears to have become the first country to test them. Madrid is desperately trying to negotiate a higher 2012 fiscal deficit target than that set by the European Commission. The austerity measures taken by the new conservative government of the eurozone's fourth largest economy will bear no fruit, believes Dr. Balmaseda, “because the problem is in the euro.” “There are great expectations that a new government is going to arrange the problem,” the professor says, stressing that the honeymoon of the Spaniards with the new government will not last for more than six to nine months. Dr. Manuel Balmaseda, Professor at the ICAI School of Engineering, is certain that the futures of Spain, Portugal, Greece and Italy lie outside the eurozone. He also believes that the countries remaining in the eurozone will not be very happy without their breakaway partners. Exit from the eurozone would mean a default for Spain, which is unacceptable for French and German banks that hold up to half of Madrid’s €900 billion foreign debt. These banks are interested in returning the money, whatever the cost for Spaniards. The professor believes that leaving the eurozone does not necessarily mean leaving the EU. “Nobody would chase Spain out of the EU,” he says. Dr. Manuel Balmaseda believes that the eurozone crisis is not just caused by governmental overspending. “The origin of the problem is the euro, the lack of competitiveness that the euro brought to Spain”. Spain is following the path of Greece with a two-year delay, believes the professor, because more austerity measures and further cuts of public spending are only pushing countries like Greece and Spain deeper into recession.

Two men from Essex accused of attempted murder in Spain have returned to England. Kyle Thain, 24, and James Harris, 29, had been in Spain for the past seven months after being accused of attacking two men in an Alicante bar in July 2011. The pair, both from Southend, were held in a Spanish prison for four months without charge. They have now been allowed to return to England on strict bail conditions. Mr Harris returned to the UK on Tuesday and his friend Mr Thain arrived at Stansted Airport on Wednesday evening. New lawyer As part of the conditions of their return to the UK, both men must sign in at the Spanish consulate in London twice a month. Speaking before her son Mr Thain's arrival, Sharon Harris, said: "I am so excited and nervous at the same time. "I still can't believe it. I won't be happy until I've got my arms around him at the airport." Both men have protested their innocence and have said they can prove they were elsewhere at the time of the attack. They were released from jail in November and given their passports back after each paid £6,000 in bail, but were told they could not leave the country. A new lawyer has now negotiated their return home. Pablo Sebastian, a Spanish lawyer working in Alicante with offices in Hadleigh in Essex, has been helping the boys' families secure their release. "We are very relieved to have them home," he said. "It is an improvement because they are back with their friends, family and at their jobs." 'Lives disrupted' Mr Sebastian said the men's "impeccable behaviour" while on bail in Spain had persuaded the Spanish judge to allow them back to the UK. It is thought the men's families have paid about £25,000 to cover travel, accommodation and legal costs since the pair were arrested. The men must now wait to hear if they must return to Spain for a trial. Richard Howitt, MEP for the East of England, is now calling for a change in European law to ensure minimum standards of justice across all member states. "The idea they have been several months in prison, outside the country and suffered such a huge financial loss is unacceptable," he said. "If we had a system whereby you respect and uphold each other's system of justice, then Kyle and James could have come home seven months ago. "But their lives have been totally disrupted, as have their families', which is why we need better standards of judicial co-operation at European level."

Mercadona is in the middle of a public relations disaster after its ‘Compy’ own label dog food brand was linked to the deaths of several pets across Spain, after having caused kidney failure in the animals. . The deaths were initially recorded by pet owners in Andalucia, Murcia and Alicante, but new reports have claimed that similar cases have been found along the Costa del Sol. Several pet owners insisted that the deaths were caused after their pets ate the own label product, and following intense pressure, Mercadona has removed two variants of the ‘Compy’ range from select stores. The chain said it is now studying whether there indeed is a connection between the product and the deaths. It would not comment on whether the problem was caused by a recent shift in packaging of the product from tins to cartons. Mercadona added: “At this stage we have only removed the product as a precaution and we are waiting for the results of the analysis. We do not know with any certainty if the food is to blame”.