Cuban government supports local developments programs

Jorge Lezcano, Cuban Parliament President's avisor, said yesterday that local development programs are fully supported by the Cuban government because they are key working strategies for the economy.

Lezcano said this type of initiatives boosts local capacities as they use local materials and resources and complement productions and services that can’t be fully covered by the national economy plan.

However, he said that because this is a relatively new practice in the island, the lack of experience, poor coordination among the parties involved and insufficient preparation can be bad for their correct implementation.

Likewise, the Economy and Planning minister, Rene Hernandez, confirmed the existence of contradictions between the base organizations and central bodies, which makes difficult the progress of such development projects.

According to one of the economic guidelines recently passed by the Cuban Communist Party, local development projects conducted by Municipal Administration Councils are key working strategies for municipal self-sufficiency.

Local governments are expected to encourage the growth of mini-industries and service centres based on the principle of financial sustainability, and in tune national economic goals.



Nerea

THE SPANISH STOCK MARKET FELL BY 1,28 PERCENT FOR A CUT IN GROWTH PROSPECTS IN CHINA

The Spanish stock market fell 1.28 percent today and lost the level of 8,500 points affected by the decline in international markets after China revised their growth predictions for this year and come down the activity in the services sector euro zone .

With the risk premium by 313 basis points, the main indicator of the Spanish market, the IBEX 35, has dropped 109.90 points, or 1.28 percent, to 8,453.50 points. The annual losses rise to the 1.32 percent.

The main European markets recorded minor losses, as the Frankfurt fell 0.79 percent,Milan, 0.68 percent, the Euro Stoxx 50 index, the 0.64 percent, London, 0.61 percent,and Paris, 0.39 percent.

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Although China enhanced the activity in the services sector, the reduction of GDP of the Asian country and warnings about problems with the Greek debt-conditioned the bad start of the Spanish stock market session, in less than an hour lost about 2 percent and approaching to 8,400 points.

The lowering of growth projections China this year, from 8 to 7.5 percent, sowed losses among Asian centers this morning: Hong Kong fell 1.4 percent and Tokyo 0.8 percent.

Jon Mikel Cruz

Standard & Poor's downgrades Greek debt again

Standard & Poor's rating agency has classified Greek debt as in "selective default" following the deal it made with creditors to reduce its debts. The rating agency says the terms of that deal triggered the latest downgrade. Greek debt already had a "junk" grade rating from the agency.

Separately, the European Central Bank said it was suspending the eligibility of Greek bonds as collateral for loans to commercial banks. The ECB explained that by the middle of next month it would start to accept the bonds again, because a programme for eurozone nations to provide supplementary collateral to insure the ECB against losses is due to come into effect.

Banks and other financial firms are being asked by Greece's government to take a 53.5% loss on their Greek sovereign bonds. The plan was agreed by the Greek parliament last week, and, if backed by Greece's creditors, it would wipe out 107bn euros of the country's debt.

Standard & Poor's said that when the debt exchange was complete it would assess Greece again and possibly raise its rating. The Greek government said S&P's move had been expected and added it would not hurt the banking industry.

Last week, rival credit rating agency Fitch also downgraded Greece's debt.

Xabier Sanchez

SPANISH GOVERNMENT WILL DEDUCT TAXES TO THE TOWN COUNCILS THAT DON'T PAY TO THEIR PROVIDERS

Spanish government will deduct some taxes that it fave before to the city councils if these institutions don’t arrange the operations of debts to pay their providers or if they don’t fulfil the ones that they agree each other.

BOE (Spanish Oficial Report) published yesterday the law that the cabinet passed on Friday. It establishes the obligation of information for a funding mechanism. In this mechanism the creditors who accept a deduction will have priority in the cashing.

This operation will transfer to the Spanish State the rights of local entities in its participation on the taxes of the State ‘in the necesary quantity to face the payment obligations’.

Apart from the providers that accept a reduction the payments that are demanded in the Justice Court before the first of January 2012 will become priority too. The most ancient debts will become priority too. The city councils will send to Treasury Department before de 15th of March, a relation of its obligation that they have to pay yet.

Erik Rios Salazar

Polish Economy

The Polish economy is one of the most important in the European Union and one that did not suffer during the global financial and economic crisis. Its market of nearly 40 million inhabitants, located strategically in the center of Europe, won 8.4 billion euros of foreign investment in 2009. Despite the global crisis Poland can boast its economy because it is the only EU economy that continues growing.

This is because the assignment of European funds or the 2012 European Championship, which has pushed the development in the area of construction and services. It is also expected that in the next years will continue the development of the Polish economy.

The Polish legal system is adapted to the needs of the common market. It offers investment mechanisms similar to those of the EU and they have benefits in foreign investment.

Poland is in a time of continued development in spite of other European Union economies that are suffering the global financial crisis. In recent years it has grown at a rate higher than the Eurozone and the GDP growth rate was 1.7%.

The fall of the world economy has increased the unemployment rate and is currently located by 11.9%. And the inflation rate is 3.5% by the strong domestic demand and the increase in consumption.

During the last year and because of the crisis in the international economy, imports and exports have been affected. Poland exports were 99.8 billion euros in 2009 (17.6% less than last year). Most exports absorb the EU countries. And the main business partners of Poland are Germany, France, Italy and Britain.

Nerea

A STEP FURTHER: LAST DAY IN POLAND

Today was our last day in Poland. We have gone to Gdansk airport, because our flight was at 1:00 p.m. Our arrival to Bilbao was at 5:30 p.m. after doing a ‘escala’ in Munich.

Next week we will have holidays for 5-7 days so we can relax a little bit and prepare to our next exams.

We are a bit sad because we leave Poland today, but we are very happy too because we have knew a lot of new friends and we lived new experiences with them. We hope to see you all again soon! Thanks for your hospitality.

Erik Rios, Xabier Sánchez, Jon Mikel Cruz

A STEP FURTHER: 5th DAY LAST DAY AT SCHOOL

Today was the last day for us with the rest of the students in Poland. In the morning we met at 9:30 a.m. at school. We divided the whole group in 4 to make our last job. It consisted in make a presentation of what we did in this four days and what we liked it more from Poland. We had the chance to show our presentations to the rest of the students, teachers and a member of the regional education deparment.

After the presentations we say goodbye to our croatian, slovenian and polish partners. And enjoyed the free afternoon! Turkish students will go home tomorrow as we are going to do.

Erik Rios, Jon Mikel Cruz, Xabier Sánchez