BAD MOVE

THE proposed departure of Spanish construction conglomerate Ferrovial to the Netherlands for ‘a better business environment’ has set off a firestorm of finger pointing in Madrid. Ferrovial, which is part owner of Heathrow airport and generated almost 90% of its revenues from outside Spain last year, said it views the Netherlands as having a more stable legal framework.

The infrastructure company also sees potential for lower financing costs due

Recriminations in Madrid over Ferrovial’s move to the Netherlands

to the country's ‘AAA’ credit rating - as opposed to Spain’s A rating.

A government spokesperson slammed the move of Spain's 13th biggest company by market capitalisation as ‘ungrateful’ and ‘not in line with the effort that the country has made in terms of investments’.

Economy Minister Nadia Calviño also voiced her disapproval, saying the decision ‘seems to go against the interest and image of our country’, adding that she had called Ferrovial's Chief Executive Rafael del Pino (pictured) - who owns 20% of the €19bn company - to convey her opposition.

By Walter Finch

Meanwhile, Spanish Prime Minister Pedro Sanchez reminded del Pino that ‘the nation is not just about building wealth, it's about being supportive, lending a helping hand, and particularly, when your country needs you.’

Reverse

Ferrovial plans involve a reverse merger, with its wholly-owned Dutch subsidiary Ferrovial International SE (FISE) absorbing it to be listed in Spain, the Netherlands, and later the

Soaring Costs

INFLATION is still stalking the Spanish economy as the latest data puts the price increases on February last year at an annual rate of 6.1%.

This represents a faster pace than the 5.9% increase recorded in January and is above the 5.7% forecast by analysts polled by international news agency Reuters Spain had previously managed to rein in inflation during the second half of 2022, registering the lowest figure in the eurozone by the end of the year. However, Spain's price index has now risen for two consecutive months in annual terms, largely due to higher electricity and food and drink prices.

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United States.

Ferrovial said that the proposed headquarters shift to the Netherlands would need to secure shareholder approval and would aim to complete the move in the second or third quarter of 2023.

Positive Trend

UNEMPLOYMENT in Spain rose by just 0.1% in February compared to a month earlier, according to Labour Ministry figures. The increase was 2,618 people, leaving a total of 2.91 million people out of work in the lowest February figure since 2008. Compared to a year earlier, unemployment fell by 200,669 - a 6.45% reduction.