THE other day I was having lunch with a group of people who remarked that food shopping was probably cheaper in Britain than Majorca apart from some obvios exemptions such as wine and tobacco.
At this point the Spanish waiter got involved in the conversation and said that he totally agreed, that Majorca had become far too expensive and this was the main reason why many foreign residents were returning to their country of origin. To some extent he is right; Majorca since the introduction of the euro has become very expensive especially if you are living on a fixed income. The pound has also shed 20 percent of its value against the single currency over recent years. But let us remember that these days that Spain is a modern day country with first rate services. These obviously cost alot of money. Employment costs are also high. So what does Spain need to do to attract foreign residents again? Lower its prices? Well this would be the most satisfactory answer but it is not popular. What could be introduced is a level of price control which establishes the maximum price for products rather than the minimum. This would be a good start.
Happy Christmas to all readers of this space.