EVER since it came to power the Balearic government has always been rather downbeat about the state of the local economy. Infact the Balearic President Jose Ramon Bauza even asked the media for their help in not talking the local economy down. However, yesterday the government announces that it sincerely doubts that the Balearics will re-enter recession again this year eventhough the Spanish economy is set for negative growth.
I find this statement quite amazing; I sincerely hope that they are right but the economic forecast is not good. Both Britain and Germany look set for more economic turbulence this year which could mean that fewer tourists with less money to spend will be visiting our shores in 2012. The summer season gets shorter every year and there is little winter tourism to speak of. The Balearic government also has to make big spending cuts which will have a knock-on effect on the local economy. The Spanish government has already said that it will be making big cuts, also, which will hit the islands. Bauza has an enormous task if he wants to keep the local economy out of recession, he must hope that the islands have a great summer season and the euro crisis doesn´t dent spending power. He must also fight the Balearic corner in Madrid to ensure that the money which has been promised to the islands is forthcoming. All in all a difficult state of affairs. However, I admire their optimism.