THE announcement last week that property developer and Real Mallorca chairman Vicente Grande has asked for court protection from his creditors should be ringing alarm bells across the Balearics and clearly underlines the fact that all is not well within the local economy. Grande allegedly owes in excess of 700 million euros, a large sum for any businessman. Now the matter is in the hands of a judge and a group of financial experts who must decide whether Grande has the necessary assets to cover his debts. Will he sell his 93 percent stake in Real Mallorca? I sincerely doubt it because he believes that the financial rescue package for his group is viable. However, the knock-on effect of his group´s financial problems is enormous and once again underlines the fact that perhaps the time has come for the Balearic government, like other regional authorities across the nation, to take action and help the building industry which is one of the biggest employers in the Balearics. Yesterday, President Antich announced an aid package but is it too little too late?
Only time will tell but it is worth mentioning that other provinces have already taken action. Building is a key industry in these islands and obviously the building industry is going to need support.