Post Peak Iberia | 89 comments (89 topical, editorial, 0 hidden)

Re: Oddly this is a good thing (none / 1)

Possibly under the "ICO loans" category below.

"No estamos aquí por gusto" · ELPAÍS.com		"We're not here for sport" - El Pais.com
LO QUE OFRECE EL GOBIERNO		WHAT THE GOVERNMENT OFFERS
- El Gobierno, tras una semana de negociaciones con el Comité Nacional de Transporte de Mercancías, presentó ayer un documento con 51 medidas económicas, fiscales y sociales.		- The Government, after a week-long negotiation with the National Committe of Freight, yesterday presented a document with 51 economic, fiscal and social measure.
- Incluye la aprobación de un proyecto de ley sobre el contrato de transporte terrestre. Incluirá la actualización automática del precio pactado en contrato en función de la evolución del precio del gasóleo y fijará la indemnización por paralización de vehículo a la espera de carga.		- It includes the approval of a draft law on land transport contracts. It will include an automatic updating of the agreed price as a function of the evolution of the price of diesel and it will fix a compensation for holding a vehicle waiting to load.
- Ampliación de las ayudas al abandono de la actividad para mayores de 58 años, para la formación profesional y créditos ICO.		- Expansion of the aid to abandon the activity for those older than 58, for vocational training and loans from the ICO [Official Credit Institute]
- Aplazamiento de las cuotas a la Seguridad Social hasta 18 meses y la agilización de la devolución del IVA.		- POstpoment of the payment of dues to Social Security for up to 18 months and speeding up of VAT reimbursement.
- Reducción de las cuotas por accidente y enfermedad laboral a la Seguridad Social de hasta un 4%.		- Up to 4% reduction of the payments tfor Social Security coverage of work-related accidents and sickness.
- Reducción del impuesto de actividades económicas (un 50%) y del impuesto de seguros del transporte.		- Reduction of the corporate tax (50%) and the tax on transportation insurance.
- Estudiarán dejar de restar puntos del carné por aparcar en el carril-bus.		- [Th epossibility of] not taking off points from the driving license for parking on a bus lane will be studied.
- Se comprometen a defender el gasóleo profesional en la Unión Europea.		- Commitment to advocating a "professional diesel" at the EU.
- Se elaborará un plan específico (controlado por la Comisión Nacional de la Competencia) para detectar las prácticas de competencia desleal.		- A specific plan withh be elaborated (under control of the National Committee for Competition) to detect unfair competition practices.
- El 80% de los representantes de los transportistas (que no apoyaban la huelga, encabezados por CETM) han aceptado las medidas.		- 80% of the representatives of hauliers (those not supporting the strike, led by the CETM) has accepted these measures.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Carrie (migeru at eurotrib dot com) on Wed Jun 11th, 2008 at 11:05:33 AM EST
[ Parent ]

Re: Oddly this is a good thing (none / 0)

If they really want to reduce capacity some sort of publicly financed buy-out of redundant capital goods could be a relatively inexpensive way to do this. The rigs are likely to be a drug on the market just now, and owner/operators with new rigs could be deep under water. Just because they are a bunch of right wing libertarians doesn't make it right to force them into bankruptcy or the loss of most of their assets. Does Zapetero's socialism count for anything?

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jun 11th, 2008 at 02:00:36 PM EST
[ Parent ]

Re: Oddly this is a good thing (none / 1)

I don't think the Spanish drivers are right-wing libertarians as Helen describes the British ones, but I could be wrong.

Zapatero might be a Socialist but he doesn't know much about economics: he's a lawyer by training.

In fact, looking at this list of measures it seems that they use the same kinds of tools that were deployed to deal with the slump in the construction industry and the popping of the property bubble: delayed tax collection, accelerated tax reimbursements, and in the current case tax cuts on everything except fuel, and ICO loans. Is Zapatero's economic team a one-trick pony, or is the Spanish state limited in its options?

Note the bit about the creation of a separate "professional diesel" fuel category (presumably for tax purposes). This is a key demand of the truckers which ZP is punting to the EU. I suspect Spain cannot introduce a new category with a different tax rate unilaterally without running afoul of the EU's rules on "illegal state support".

I'm a little unsure what you mean by some sort of publicly financed buy-out of redundant capital goods could be a relatively inexpensive way to do this. The rigs are likely to be a drug on the market just now: what can the State do with a bunch of new rigs?

There was a recent comment by kcurie on some sort of report on freight and rail transport in Spain...

The spanish comission of infraestructure gathered yesterday and we no know the plans for the spanish train network. given the high price oil one would guess it should be first page.. je jeejj keep dreaming. Still, this is why it is so important: oil price moves to food price inflation if food transport is made using roads.

Maybe this is a good time for me to have a look at it so I can speak to whether the Spanish government "really wants to reduce capacity".

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Carrie (migeru at eurotrib dot com) on Wed Jun 11th, 2008 at 02:21:10 PM EST
[ Parent ]

Re: Oddly this is a good thing (4.00 / 3)

what can the State do with a bunch of new rigs?

Give them to the Spanish Army? Sell them abroad? Compensate the owners for a portion of their losses? I have no idea who would be hurt most if an owner-operator walked away from his loan and sent the keys to the holder of the loan. If it were large corporations that needed bailing out I'm sure the solution would be much more obvious. I have no idea how many owner-operators might respond. In the US this would fly in the face of usual practice which is to cover the losses of the big boys, who don't really need it and where the aid won't really accomplish the objective--capacity reduction. It is, perhaps, a whimsical idea to try to help small businessmen through a painful transition. I just wondered if in Spain it might actually be possible and even helpful.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jun 11th, 2008 at 05:29:40 PM EST
[ Parent ]

Re: Oddly this is a good thing (none / 0)

I don't have a hotline to ZP's economic team, but the idea is interesting.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Carrie (migeru at eurotrib dot com) on Wed Jun 11th, 2008 at 05:52:58 PM EST
[ Parent ]

Re: Oddly this is a good thing (none / 1)

I'm not sure buying the rigs would be the answer. It could be interesting to offer some form of cannily disguised aid to the independents to drive down the prices of the majors and undermine their monopoly, but that seems to be illegal under EU rules.

Nationalising an independent sector would be a neat trick. I'm not sure it's been attempted before. It's probably illegal too, but it's still a fun idea.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Wed Jun 11th, 2008 at 06:56:42 PM EST
[ Parent ]

Re: Oddly this is a good thing (none / 0)

Ah, the EU rules to the rescue! Plus ca change, plus ce le meme chose!

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Jun 11th, 2008 at 09:43:19 PM EST
[ Parent ]

Re: Oddly this is a good thing (none / 1)

Now you know what those to the left of the Social Democrats vote against EU treaties even though they are internationalist.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes

by Carrie (migeru at eurotrib dot com) on Thu Jun 12th, 2008 at 05:55:25 AM EST
[ Parent ]

Public ownership is not illegal (none / 1)

under EU rules. subsidies that distort competition are.

If you nationalise the whole industry, you would simply have to ensure that the domestic industry is not treated better than foreign (European) trucking companies.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Jun 12th, 2008 at 11:10:08 AM EST
[ Parent ]

Post Peak Iberia | 89 comments (89 topical, 0 editorial, 0 hidden)

Top Diaries

Easter Grift

China Plans: Energy in the 15th Five Year Plan

A Deadline is a Deadline

But First . . .

Energy (and Other) Events Monthly - April 2026

City Agriculture - March 22, 2026

Recent Diaries

A Murderer At Large, the World Sits Back and Watches

Easter Grift

Insanity

China Plans: Energy in the 15th Five Year Plan

A Deadline is a Deadline

Trump: AMALEK, Total Annihilation of Persia

A Revolt: With Francis a New Beginning?

But First . . .

Energy (and Other) Events Monthly - April 2026

City Agriculture - March 22, 2026

Obnoxious

Cowardice and Treachery Combined: Spells TERROR

Occasional Series