Maximum Type Of Personal Income Tax In Spain Is Fourth Highest In Europe

The tax punishment of the so-called rich that characterizes Spain, whether by taxing their income or the mere possession or transfer of their assets , is far from being a new phenomenon, caused by the setback that the new Treasury measures will mean for these taxpayers . Quite the contrary, the most recent tax comparisons of the OECD show how our country is in the Top 5 in Europe in terms of the magnitude of the highest marginal rate that is applied in Income Tax.

Specifically, it ranks number four in the entire Old Continent, with an aggregate rate (adding the state section and that of the corresponding autonomous community) of 54%.

Spain is only surpassed from this point of view by Denmark with 55.9%, followed by France (55.4%) and Austria (55%). And that does not mean that all those countries are more rigorous in fiscal policy. In fact, this is how it is seen in aspects such as capital income. “Although it is true that the marginal tax rate in neighboring countries is higher than that in Spain, it is no less true that the tax pressure borne by income, especially capital, in our country is higher than the existing average in the EU-27”, according to Leonardo Neri, partner in the Tax area of ​​Montero Aramburu and also co-managing partner of the firm.

Returning to the Personal Income Tax, the comparison with the average does not benefit us either, to the extent that the Spanish personal income tax exceeds it by more than ten percentage points.

It cannot be argued that the high levy is a characteristic of the large economies of the Monetary Union. Leaving aside the high Spanish and French maximum margin, Germany applies 47.5% to the highest income bracket, a rate very close to Italy’s own (47.2%).

Impositions higher than 52 percentage points
Outside the eurozone and the European Union, the United Kingdom also stands out with a maximum tax of 45%. The differences, as expected, become noticeably wider when the small economies of Eastern Europe and the Baltic countries are taken as a reference. Specifically, the comparison of the OECD reveals that the lowest maximum margins are found in Latvia (31%), Slovakia (25%), the Czech Republic (23%), Estonia (20%) and the especially striking 15% of Hungary.

Impositions higher than 52 percentage points are usually considered to be within the limit of confiscatory exactions, according to the prosecutors of the club of developed countries, but the truth is that Spain has several autonomies that are in that situation. This is the case of the Valencian Community, the territory that is precisely to blame (due to its high regional section) for reaching that 54% that highlights Spain among the most severe tax countries with the highest income levels.

Valencia will continue to lead
And the situation is not going to change in that territory. It is true that the Valencian president, Ximo Puig, announced changes in personal income tax but these will be limited to a deflation of the brackets for incomes below 60,000 euros per year. There will be, therefore, no moderation in taxes for high incomes. Moreover, it remains to be seen if the PSV government partners do not demand greater pressure on this type of taxpayer, as a bargaining chip to give the green light to the already announced deflation.

Beyond the Valencian Community there are still other territories that equal or exceed 50% in their largest section of Income Tax. They are Asturias, Cantabria, Navarra, La Rioja and Catalonia.

In this last autonomy, also highlighted for decades for its high tax rates, there will be no changes in terms of income, not even those of the lowest levels provided for in personal income tax. Not in vain the measures announced this week by President Pere Aragonès have been reduced to bonuses for school children.

Reduction of half a point in all the autonomous sections of the IRPF that decided this year in Madrid
But no one can deny that one can speak of the existence of two Spains from the fiscal point of view, especially with regard to the treatment of citizens with higher incomes and not all of them are governed by the PP. Below a rate of 50%, are Galicia, Castilla La Mancha and Andalusia with 47%; Castilla y León with 46% and, especially, Madrid whose marginal remains at 45%.

And the most recent announcements about changes in territorial fiscal policy allow us to predict that the differences will continue to deepen. In the case of Asturias and the Canary Islands, income tax charges have been lightened but with a very focused scope in rural areas at risk of depopulation.

A similarly restricted strategy is adopted by Aragón, governed by the PSOE, for areas with demographic problems. Much more general is the reduction of half a point in all the autonomic sections of the IRPF that Madrid decided this year; the lowering of the maximum rate from 48.2 to 47% in Andalusia or Galicia, which simplified its tax structure from seven to five brackets.

In recent months, however, it is in the field of rate deflation where the popular know that they can take greater advantage at a time when the 2023 elections are approaching.

Madrid’s response
On a national scale, the central government is reluctant to update Income Tax rates according to the current high level of prices. The Madrid Executive responded, in the last Debate on the State of the Region, advancing to this exercise the deflation of up to 4.1%, which is the ordinary level of growth of the salary costs of the INE.

But to consider Spain a rare bird in the tax treatment of wealth, we must look beyond personal income tax and also consider the effects derived from Wealth Tax.

Although this tax figure has a direct translation into English, such as Wealth Tax, the truth is that there are many foreign tax experts for whom this rate is difficult to explain.

Especially when it comes to its stubborn survival in a few European countries such as Switzerland, Norway and, of course, Spain. Among the analysts who do not see any utility that justifies the survival of this tax are, once again, the OECD experts, who in multiple reports not only criticize a performance that, in terms of collection, is negligible.

In addition, from the organization led by the Australian Matthias Cormann they assure that it has counterproductive collateral effects. Specifically, “tax avoidance and evasion behaviors have become widespread in this area.” Not surprisingly, its very start-up and the control it requires are extremely difficult.

Patrimony setback
Moreover, the specialist of the Tax Foundation organization, Daniel Bunn, highlights the significant setback that the Wealth Tax has experienced in recent decades on a global scale. Bunn reveals how there were eight countries that, within the OECD, applied it at the end of the 1960s when one can speak of a certain boom in this figure.

That number experienced an increase, until doubling its amount in 1996, but the decline has been unstoppable in subsequent times, until it became the residual tax that it now represents.

As a result, Bunn believes that the United States “must learn from these experiences” and put aside any intention of creating a similar tax figure. A similar reflection is the one that took place in France and that has led the country presided over by Emmanuel Macron to get rid of this figure.

In the neighboring country, it was estimated that, in the case of the Wealth Tax, the global net loss on the collection as a whole could be double the possible income obtained by this tax, as a consequence of the contraction of the activity that was would generate

The aforementioned expert from the Tax Foundation does not hesitate to consider reasonable the growing rebates that have limited the area of ​​influence of the Wealth Tax not only on a national scale but also “regional” in countries such as Spain. Our country will soon have two autonomies, Madrid and Andalusia, which will have this tax annulled for all practical purposes.

But the truth is that the way of punishing wealth, in one way or another, is far from losing ground, as has been shown this week, with the announcement of a new Solidarity Tax for large fortunes that will be applied to large fortunes, from three million euros, with rates between 1.7 and 3.5%.

With regard to Inheritance and Donation Tax, the General Council of Economists highlights the reduction in the rate approved by the Andalusian Government and the 99% discount for groups with links I and II typical of Castilla y León.

problems for heirs
The situation in much of Spain, however, is far from improving. Not surprisingly, it should be taken into account that there are still autonomies that tax the mere transfer of wealth at unprecedented rates for Western economies, being above 80% in some cases.

Sources from several law firms in territories such as Asturias assure that the curious phenomenon of people who decide to renounce the legacies that correspond to them due to the impossibility of facing the tax burdens that they entail continues to be observed.

With regard to Property Transfers and Documented Legal Acts, Andalusia has lowered, effective this year, the general rate in both tax modalities.

Property transfers
While Galicia has done so specifically in the Onerous Property Transfers section. And before the 2023 elections there may be more movements. Not in vain in Castilla y León there is also speculation about a possible elimination of Patrimony in the future, as in other popular autonomies such as Murcia.

To complete the map of Spanish taxation, it is also important to take into account the concept of a high Spanish tax wedge, also above the OECD average. Is this tax concept equivalent to the sum of Social Security contributions and Personal Income Tax (IRPF)? in the OECD it accounted for 34.6% compared to 39.3% in Spain, which places our country in the group of countries that pay the most.

Some countries that present lower labor taxes than Spain are Denmark with a tax wedge of 35.2% or Norway (35.8%). Always continuing with the club statistics of developed countries, the fact that the tax wedge in Spain exceeds the average of developed countries is due to the social contributions paid by companies, which are significantly higher in our country.

Thus, in Spain, Social Security contributions by companies account for 29.9% of gross salary, according to 2020 data, compared to 16.3% on average in the OECD, making our country the seventh of a total of 37 analyzed with the social contributions in charge of the companies with the highest amount.

10 Keys To Understand The Impacts Of Taxing Large Estates

The new tribute to the richest raises not only impacts in various political, fiscal and financial fields, but also, and in the absence of a text, doubts about the effects it may have among the richest. These are the 10 issues currently on the table.

1. Missing a text . Ignorance of how the tax will be articulated in the absence of text prevents measuring its impact and making decisions. There are unresolved issues such as the condition or not of the holding of shares in family businesses and if it collides with the Wealth tax. “It will be necessary to carefully analyze the rule that is finally approved in order, in light of previous rulings, to be able to determine its possible constitutionality or unconstitutionality,” indicates the expert from KPMG Abogados, in line with the experts from PwC or Ontier consulted.

2. Not applicable in 2022. The creation of the tax cannot be via the Budget Law project, but through a bill, which will make its approval difficult within the current year. It is expected to start in 2023 and would allow estates to maximize their tax planning and structures.

3. Change of residence from Spain. Despite the fact that the key query these days is the possibility of changing tax residence to avoid payment, its practical application will be very residual because it requires certifying residence outside the country for at least 183 days, that is, half a year.

4. Country benefited. Portugal, as a neighboring country, and without wealth tax, would be the most benefited from the departure of investors, if they have incursions into the Peninsula.

5. Election tool. The tax on large fortunes seeks to neutralize the tax advantages of Madrid and Andalusia, two Autonomous Communities governed by the PP, and a short year before the general elections. The prosecutors advocate “updating the regional financing system” so that the regions decide their taxes without intrusions, but knowing that they have to achieve “financial sufficiency” with their tools and not ask for compensation at the national level.

6. Impact on the Autonomous Communities. According to the Government, it will affect 23,000 taxpayers and will collect 1,500 million euros. But the new tax will be deductible in the Wealth Tax, that is, it will be paid by those who do not pay 3.5% for that concept in their CCAA. In other words, it directly affects Madrid and Andalusia because it is not operational and other regions where the rate is less than 3.5%.

7. Capital flight. Experts rule out exits to other countries because the tax taxes wealth regardless of where it is located.

8. Effect on banking. Likewise, financiers reject the idea that private and investment banks can thin their balance sheets, since the tax does not depend on where the assets are.

9. Legal uncertainty. Experts believe that fluctuations in taxation only cause legal insecurity, which breaks a climate of stability to attract foreign investment.

10. Effect on inheritances and donations. Taxing the largest estates could accelerate inheritance, especially in Autonomous Communities with more favorable tax treatment such as Madrid. As explained by a bank, it would consist of dividing the assets and if each of the beneficiaries falls below three million euros, they would not pay taxes, although they would do so for donations, unless they are in cash, and there is also the capital gain of the donor. It would be necessary to do numbers to know if it compensates.

Wall Street Banks Are Preparing For The Invasion Of Taiwan

Global financial institutions, still reeling from multibillion-dollar losses in Russia, are now reassessing the risks of doing business in China after an escalation of tensions over Taiwan. Lenders including Societe Generale, JPMorgan and UBS have asked their staff to review contingency plans in recent months to manage the exposures, according to sources close to the operations.

Meanwhile, global insurers are moving away from new policies to insure companies that invest in China and Taiwan. In addition, the costs of political risk coverage have skyrocketed by more than 60% since the Russian invasion of Ukraine.

“Political risk around potential US sanctions and the likelihood of China responding by restricting the flow of capital has kept risk managers busy,” said Mark Williams, a professor at Boston University. “A sanctions war would significantly increase the cost of doing business and push US banks to rethink their strategy with China.”

Heated rhetoric between Beijing and Washington over Taiwan has unsettled businesses, just months after Russia’s war unexpectedly forced the world’s biggest lenders out of business and stop serving ultra-rich customers. Last week, US lawmakers stepped up pressure on banks to answer questions about whether they would withdraw from China if it invaded Taiwan.

While the financial services executives who spoke on condition of anonymity said they view the risk of armed conflict in North Asia as low, they see tit-for-tat sanctions between the U.S. and China disrupting the flow of finance and commerce are increasingly likely.

Any withdrawal would represent a dramatic change for Wall Street firms, which have poured billions into China after opening up their industry in recent years. Lenders ranging from Goldman Sachs to Morgan Stanley have taken control of joint ventures and sought more banking licenses, while adding staff by doubling down on the country. The combined disclosed exposure of the largest Wall Street banks to banks in China was approximately $57 billion at the end of 2021.

Those ambitions are now threatened by rising tensions between the United States and China. Last week, Citigroup Inc. CEO Jane Fraser faced questioning from lawmakers over whether the lender would pull out of China in the event of an invasion of Taiwan. She responded online with other banks: She would seek guidance from the US government before making a move.

“It’s a hypothetical question, but it’s very likely that we would have a materially reduced presence, if any, in the country,” Fraser said. Any pushback in China would only hurt these companies, China’s Global Times newspaper reported last week.

“US politicians want to increase pressure to force major US financial organizations away from the Chinese market,” the Communist Party newspaper said. “There is no denying that China’s financial markets may lose some capital, but US banks may also face worsening economic problems as a result of Washington’s poisonous decision.”

In recent months, companies have been conducting stress tests to see if they can manage the risk of a sudden market crash, examining their exposure on currency, bond and stock trading desks, people familiar with the matter said. While banks often make contingency plans without putting them into action, the mounting tensions are adding some urgency.

France’s SocGen has been evaluating staffing in Greater China, including Hong Kong, fueled by nervousness among executives in Paris, one person said. UBS has asked its Taiwan-based trading desk to assess its contingency plan and see how they can reduce exposure to the island, according to a person familiar with the matter. One way would be to reduce foreign exchange trading services for Taiwanese customers, the person added.

Deutsche Bank AG has also prepared and made plans that would allow it to move some regional assets and staff quickly in the event of an emergency around Taiwan, people familiar with the matter said. Officials from all the banks declined to comment.

business losses
The most important thing is to ensure the safety of staff, identify customers who may be sanctioned and look for plans to mitigate counterparty risk and potential business losses, according to two of the bank’s executives who asked not to be identified discussing a sensitive issue. .

One banker said staff at his firm had considered the option of liquidating positions on the China Financial Futures Exchange to reduce counterparty risk on land, replicating those contracts on other exchanges, such as in Singapore.

Meanwhile, insurers have raised prices an average of 67% for China-linked political risk coverage, according to Willis Towers Watson Plc. Companies that can get insurance are facing a “steep reallocation” of pricing, which has been “very serious” for China, according to Laura Burns, senior vice president of political risk at London-based Willis Towers Watson.

Insurers are writing new policies, but “cautiously and selectively” in China and have reduced their exposure to Taiwan, said Nick Robson, head of credit specialties at brokerage Marsh & McLennan Cos. Political risk insurance pays if a client loses money due to political events such as civil unrest, terrorism or war.

HSBC Challenge
At HSBC, the global lender most exposed to China and Hong Kong, calls by its largest shareholder to break up the Asian business have been fueled in part by concerns that it is susceptible to a US-China decoupling.

Ping An Insurance would back a breakup of HSBC’s business in Asia or just Asia’s retail operations, a person familiar with the matter said. The lender, which was founded in Hong Kong and Shanghai in 1865, has increasingly been looking to invest in other markets such as India to cushion any financial hit from volatility in parts of North Asia, a person familiar with the matter said. Chief Executive Officer Noel Quinn has resisted calls for a breakup. The bank declined to comment.

Planning for the spectrum of scenarios is no easy task, especially when executives are wary of alienating Chinese officials on a highly sensitive issue. A senior private banker in Hong Kong, who works with wealthy Chinese clients at a European bank, says the subject is so taboo that bankers are reluctant to hold formal discussions or put plans in writing for fear it will return to Beijing.

“Some of the banks that are most exposed are the most afraid to plan for the long term, fearing a backlash from China,” said Isaac Stone Fish, founder of Strategy Risks, which specializes in corporate relations with China. “The banks that have a lot of these conversations are doing it outside of China and Hong Kong.”

Lessons from Russia
In some cases, executives worry about a situation, much like Russia, in which Beijing prevents foreign banks from moving assets or capital abroad as payment for any US sanctions.

Russian authorities plan to review individual applications on the sale of foreign bank units in the country without instigating a blanket ban on such deals, two officials familiar with discussions on the matter said earlier. The government will consider each request and decide to grant the permit if it is deemed beneficial to the nation, the officials said.

The Interfax news service had earlier quoted Deputy Finance Minister Aleksey Moiseev as saying that a government subcommittee on foreign investment would reject all sales requests from foreign banks to sell their units “until the situation has improved”.

European banks, including Societe Generale and UniCredit SpA, have pointed to combined impacts of nearly $10 billion from Russia, mainly from reducing the value of their operations and setting aside money as a shield against expected economic ramifications.

“Russia has proven to be a model of what you don’t want to happen,” said Dale Buckner, chief executive of security services firm Global Guardian, whose clients include banks and private equity firms. “People are wondering ‘what if’: if there was a lockdown, if the cyber system was shut down, if there was naval strikes or an actual war. What would happen?”

The first part of the calculation would be to review tangible assets and intellectual property in the region, understand where a company’s money is parked and who is in control if China decides to take control of the banking system and deny access, he said.

“It’s almost impossible to plan for these things,” said Tom Kirchmaier, a professor at the Center for Economic Performance at the London School of Economics. “While there has been some planning for these scenarios since the financial crisis, there is no doubt that there will be some big surprises when the theory finds its way into practice.”

Madrileña Red de Gas And Pryconsa Launch The First Green Hydrogen Project

Madrileña Red de Gas, a natural gas distributor in the Community of Madrid, and the Pryconsa group, developer and homebuilder, have launched the first renewable green hydrogen development project in Valdemoro.

Both companies will work together on the construction and application of an infrastructure for the production and supply of renewable hydrogen with the aim of supplying 100 homes in Valdemoro, owned by the real estate company.

Through this collaboration, Madrileña Red de Gas and Pryconsa seek to demonstrate the viability and extend the use of renewable hydrogen, of which Spain has great production potential, being an energy capable of cleanly replacing natural gas, and taking advantage of this way the existing natural gas supply infrastructure.

In the words of Marco Colomer, president and CEO of PRYCONSA, “being part of the first project in Spain for the use of renewable hydrogen as a source of energy in a housing development is part of the Sustainable Development Goals outlined by our company as part of our sustainability strategy.

This innovative project reinforces our leadership in housing construction and development and adds value to our product, as well as reinforcing the relationship with Madrileña Red de Gas as a leading and reference supplier, and, above all, allows our customers enjoy a new source of energy, the most innovative and sustainable today”.

“As the hydrogen economy continues to grow thanks to its potential to reduce energy dependence and polluting emissions, while driving economic growth by creating new jobs, we will see new public policies emerge and the regulation necessary to encourage innovation. , the transfer of knowledge and, ultimately, the development of more projects like this one that we have just launched with Pryconsa”, concludes Alejandro Lafarga, general manager of Madrileña Red de Gas.

Danone Invests 22.7 Million In Parets To Grow In Vegetable Alternatives

The Danone factory in Parets del Vallès (Barcelona) celebrates its 40th anniversary this year on the verge of completing a renovation process that has involved an investment of 22.7 million euros and has made it the only hybrid plant in the group, which produces both dairy and its vegetable alternatives .

The factory has been a pioneer in many Danone products since its inception, due to its proximity to the Spanish headquarters and the Barcelona R&D center. The first Danacol came out of Parets , and it was also a testing ground for Actimel , among other examples.

Currently, it produces 80,000 tons per year of 132 references of the Activia , Oikos , Vitalinea and Alpro brands , and exports 23% of the production to more than 10 European countries. It does so in six production lines with 160 workers : five for dairy products (which account for 85% of the volume) and one for vegetable alternatives (15%).

Parets debuted in vegetable alternatives to yogurt in 2021, with an investment of 12 million to install a new production line for references based on coconut and oats. At the beginning of this 2022, a line of soy-based products has been added that has meant an injection of four million more.

In addition, in 2023 a digitization project will be completed for 6.7 million euros, which has involved the complete automation of the warehouse (with robots that autonomously transfer materials from the shelves to the production line) and improvements in flows and processes for improve cost and production efficiency.

Thanks to the digitization projects, Parets has reduced the emissions generated by each ton of product by 16% in two years , which is equivalent to more than 2,000 tons of CO2, and has cut water consumption by 27% per ton of product .

The Catalan factory is characterized by its flexibility, which will make it possible to increase the weight of the production of vegetable alternatives if demand requires it. And it is that, for example, coconut-based references are growing at a rate of 200%, says Víctor Sales, Director of Operations at Danone Iberia.

In general, Danone has its own “unicorn” in Alpro (its vegetable alternatives brand, which it bought in 2016), in the words of Laia Mas, director of Corporate Affairs and Sustainability at Danone Iberia. In 2017, Alpro invoiced 1,500 million euros, which in 2020 was already 2,200.

According to data from Danone, Spain is the third European market for vegetable drinks and is in the top 5 for alternatives to yogurt. Today, 58% of Spaniards consume vegetable alternatives to dairy, and of these, 98% combine them with traditional dairy products, in line with the rise of flexitarianism .

The modernization and improvements in efficiency of Parets are allowing the facilities to alleviate part of the current increase in costs, and their continuity is guaranteed in the medium term, while Danone has decided this year to close the plant in Asturias , whose production will be assumed by France. Along with Parets, the Spanish dairy plants of Tres Cantos (Madrid) and Aldaya (Valencia) continue.

Instagram Wants To Prevent You From Receiving Nude Photos Without Consent

Instagram is working on a new security and protection function for its users, with which it will be able to detect when an image contains a nudity in order to blur it and let the user who receives it decide whether to see it or not.

Unfortunately, receiving a nude photo from an unknown person or from someone we don’t want to receive that type of content from is something that happens a lot more than we think. This is a type of harassment , to which very few governments are paying attention despite the fact that many people, especially women, receive these unwanted images.

Little by little this is changing and since this year the United Kingdom collects in The Online Safety Bill, something similar to an online security law, that sending photos or videos where they appear nude or sexual content without prior consent is equivalent to the law of exhibitionism (show genitals on the street) and is sentenced to two years in prison.

Now, as developer Alessandro Paluzzi has discovered, Instagram has also wanted to take action on the matter and is working on a new technology that will prevent its users from receiving photos of sexual content without their consent.

– Alessandro Paluzzi (@alex193a) September 19, 2022
At the moment not much is known about this technology, only what Paluzzi shows in the screenshot. It is important to remember that as long as it is consented, the sending of sexual content is allowed, and that despite the fact that this technology detects nudity, Instagram does not have access to these images or videos.

The app will only blur these contents and it will be the user who receives them who decides if he wants to see it or not . In turn, the user will have the power to activate or deactivate this function as he sees fit and finally, when this technology is extended, the platform will offer a series of security tips to educate people on how to act in the face of this type of content.

Being something that Instagram is working on, there is still no official confirmation that this technology is going to arrive, although being an increasingly common problem, we all hope that it will become a reality.

It is a great advance in terms of protecting people from this type of sexual harassment and it would not be surprising if this technology were officially launched to reach other company apps such as WhatsApp or Facebook.

The Educational Power of Relationships

What does accompanying consist of? What is its scope and what are its limits? How do they accompany the teacher, the mentor, and the rest of the professionals of the educational centers? These and other issues will be the subject of study, work and research within the framework of the I International Congress: “The Educational Power of Relationship” which, organized by the Francisco de Vitoria University, will be held on October 7 and 8 in Madrid .

The event, in the words of Antonio Sastre, coordinator of Comprehensive Training for Regnun Christi Spain schools, “emerges as a response to the educational challenges we are experiencing at the present time.”

The academic meeting has been promoted by the UFV Accompaniment Institute, in collaboration with the UpToYou Foundation, the Faculty of Education and the Online Unit, also from UFV. According to Laura Martín, director of the Primary Education and Secondary Education degrees at UFV, the congress “will allow us to continue reflecting and thinking about the relationship and accompaniment, which must be an essential basis in any educational model .”

Aimed at active teachers, both from the university field and from schools or institutes, and directors of educational institutions, the event wants to put the epicenter in the person, in their way of learning and in their natural need to be accompanied . “We are always looking for networking opportunities with those we share areas with and, in this case, this issue interests us all. The relationship, as part of the teaching-learning process, is a very relevant issue in our environment,” says Jorge López, president of the Scientific Committee of the Congress.

It is a congress designed by and for trainers, in which, through its presentations, round tables and workshops, it will seek to generate a culture of accompaniment in these times in which digital media have enormously multiplied our possibilities of relating and communicating. .

In this sense and related to digitization and its context, Leire Nuere, director of the Online Unit of the Francisco de Vitoria University, assures that “the world of digitization, of new technologies, has also allowed students to get to know each other better themselves as people and as learners and, at the same time, it has also facilitated the relationship with the teaching staff”. However, digitization also carries the risk of isolation , as it could have the effect of imperceptibly alienating us from the other.

Likewise, during the congress, the conclusions of the I Study on the Impact of the Relationship in the University environment, whose authors are Antonio Sastre, José Consuelo Valbuena, Leire Nuere-Salgado from the Francisco de Vitoria University, and José Víctor Orón ( UpToYou Foundation).

The meeting will feature the participation of prominent experts in this field , both foreigners, Moshe Tatar, professor of Education at the Hebrew University of Jerusalem, and Paul Vitz, emeritus professor of psychology at New York University, as well as national professionals, Carmen Guaita, philosopher and writer, José Víctor Orón Escolapio, researcher in Emotional Education and director of the UpToYou Foundation, Sonia González, organizational transformation consultant and director of various training projects, or Ubaldo Cuesta, professor at the Complutense University of Madrid.

The Francisco de Vitoria University will be represented by its rector, Daniel Sada, as well as by its vice-rector for Comprehensive Training, Fernando Viñado, as well as the director of Humanistic Training, Ángel Barahona, and the professor of Humanities, Isidro Catela, among others.

Help Of The Military To Workers Who Retire Early

To retire in Spain it is necessary to accredit a number of years of Social Security contributions. This figure will be different depending on the modality chosen, but in the case of early retirement it will be significantly higher to compensate for this advance with respect to the ordinary retirement age.

The pension regulations require workers to prove at least 35 years of contributions if they wish to retire early and that advance is made voluntarily. On the other hand, if the early retirement comes from a non-voluntary cessation of work, 33 years of contribution will be requested.

As these are longer contribution periods (in ordinary retirement only 15 are required, although more will be needed to have a certain amount of pension) the possibility of giving a ‘push’ to workers who require it is raised: increase the years quoted using part of the periods developed in compulsory military service , better known as the ‘mili’.

Workers who served in the military may add a maximum of one year to their contribution period to meet the contribution requirement for voluntary or involuntary early retirement. Social Security explains on its website that “they are computed to reach the specific contribution period in the case of early, voluntary or involuntary retirement and with a maximum limit of one year “.

This not only applies to the ‘military’, it will also be applicable to people who performed substitute social service (conscientious objectors) or those who performed compulsory female social service .

Be that as it may, these periods may only be added to the total number of years of contributions when strictly necessary in order to comply with the mandatory contribution period. Social Security explains that “only in the event that this contribution is necessary, a screen will open requesting that the period of said military service be completed” and that, if it is not necessary, “nothing must be indicated”.

Thus, a person who wishes to retire early and does so voluntarily with a contribution of, for example, 34 and a half years, will be able to complete that half year that is missing to meet all the necessary requirements. If you already had those 35 years guaranteed, it would not be necessary to include any time from the ‘military’, the substitute social benefit or the compulsory female social service.

In this way, the nature of the aid of the ‘military’ in early retirement is understood: they only serve to reach the necessary contribution periods, but nothing more. A year cannot be added for the purpose of increasing the percentage of the regulatory base to which one is entitled and its only influence is that mentioned above.

The reason why the ‘mili’ does not help in ordinary retirement
This aid for early retirement is not applicable to ordinary retirement despite the fact that it is a request extended over time and that there is an old political promise neglected by governments of different colors.

The Executive of José Luis Rodríguez Zapatero promised to draft “a bill that establishes a compensation system for Social Security so that it can recognize, in favor of the interested persons, a period of assimilation of the time of compulsory military service or substitute social benefit”.

The promise, contained in the text of Law 27/2011, of August 1, the 2011 pension reform that can be consulted at this link in the Official State Gazette , was not carried out. The gauntlet was not picked up by the two PP governments presided over by Mariano Rajoy nor later in the socialist government (and later in coalition with United We Can) of Pedro Sánchez.

The Eco10 Bets On Value And Opens Up To Renewables

The current renovation of the Eco10 portfolio , the index of quality ideas prepared by with the collaboration of 50 analysis houses and calculated by Stoxx, is historic. Never before since the creation of the index on June 16, 2006 had there been five changes in the same review, that is, half of the selective. Thus, Solaria, Cellnex Telecom, CaixaBank, Acciona and BBVA will replace Banco Sabadell, Santander, ACS, CIE Automotive and IAG from September 16 at the end of the session, the day on which the new additions will become effective.

This changing of the guard is not accidental if the current market context is taken into account, where the cocktail of inflation, energy crisis and recession drums has led the orange indicator to drop close to 14% in the year, with closing data of August. Despite this setback, the Eco10 is 33 points higher than the Ibex 35 since its inception.

One factor that stands out in the composition of the new portfolio is the increase seen in the confidence of fifty analysts and managers who build the indicator on the Ibex 35 blue chips – with the exception of Santander, which is left out. Thus, Repsol, Inditex and Iberdrola are the three main positions after their weight has increased in all of them compared to the June review. In the specific case of the oil company, it has been the preferred value of the experts since September of last year.

Another feature of the new portfolio is the incorporation of the renewable bias –after the departure of Siemens Gamesa in December 2018– with the debut of Solaria in a context of crisis due to gas prices and energy transition and without forgetting that Acciona Energía is has been at the gates of debuting in the indicator. The one that does return is its parent company, Acciona, for the first time since its expulsion in March 2010.

In this way, the current composition of the selective is made up –following the weighting, from highest to lowest, given by the experts– by the following ten firms: Repsol, Inditex, Iberdrola, Grifols, Telefónica, Solaria, Cellnex, CaixaBank, Acciona and BBVA. However, within the portfolio their weight is evenly weighted, with 10% for each of them.

In general terms, the current portfolio offers an average upward potential of 34.4% for the coming months, compared to 32% for the Ibex 35, and a dividend yield of 4%. Of course, it is bought at a demanding multiplier, since it has a PER (number of times the profit is included in the share price) of 15 times, compared to the 10.4 times estimated for the Ibex 35. This This is mainly due to the inclusion of companies such as Acciona (22 times), Grifols (19.5 times), Inditex (17 times) and Iberdrola (16 times).

Six of the ten members have a buy recommendation from the FactSet consensus, while Acciona and Telefónica receive a hold and Solaria – one of the most bullish stocks so far this year, with more than 20% – charges with a sales tip.

In a complicated context for energy companies and with the European Union looking for ways to limit the impact of the high price of gas that households must assume, the solar company has recorded around 22% since January. “This vertiginous rise began after the outbreak of the war, where investors began to discount the need to invest in renewable energies so as not to depend on other countries in the future and achieve greater price stabilization,” they point out from XTB.

With this argument, CM Capital Markets has decided to keep the firm for another quarter in its portfolio. “Solaria should be favored by empowerment through a more favorable regulation of clean energy (solar) compared to fossil fuels, which are more polluting and affected by the war between Russia and Ukraine ,” says Jorge Lage, an analyst at the entity.

Not surprisingly, experts still give it a range of up to 21.41 euros per share. On the other hand, profit estimates reflect a growth of 38% for the 2022/2024 period. For this year alone, analysts have improved their forecast by 31% compared to what they expected at the beginning of January, and 23% for 2023.

Acciona has had to wait for more than a decade to become part of Eco10 again. Although in recent years the company’s action was penalized by the aspect of a family holding company that its holdings in businesses that are not related to energy gave it, the decision to take its renewables division public has catapulted the market not only to the subsidiary, but to the parent company itself, which adds up to nearly 20% in the year.

With its latest results, Acciona exceeded consensus forecasts for ebitda (gross profit) by 5%. “In addition to the improvement in the renewables division, construction activities also performed better than expected,” Barclays experts recall.

“Acciona’s history continues to be supported by a solid growth plan in renewables, an infrastructure portfolio at all-time highs and positive commercial activity in the real estate division,” highlights Aránzazu Bueno, an analyst at Bankinter.

Analysts still trust that its share will advance 5% more to 206.86 euros where they place its fair price.

The manager of telecommunications towers is an old acquaintance of the index and returns with the best recommendation of the entire Ibex 35 (see page 19). Her return coincides with her titles, noting losses close to 30% (she is one of the most bearish of the year) and falling 20 points from the European telecommunications sector. In this way, the firm can advance from current prices more than 67%, to 62.12 euros, in which the consensus sees it trading. Twelve investment banks see it above these levels, with target prices between 64 and 87 euros, with Insight Investment Research, Bestinver Securities and Berenberg as the most optimistic about its future performance. “Although the company’s attractive fundamentals now seem well appreciated,

With its latest accounts presented at the end of July, the teleco confirmed its outlook for the 2022 financial year with an EBITDA (gross profit) that would be between 2,650 and 2,700 million and in line with the FactSet? forecast of 2,671 million after have lowered it slightly, by 0.3%, compared to what was expected at the beginning of January. Of course, for 2023 and 2024, it places it at around 3,000 million euros.

BBVA and CaixaBank
The analysts and managers who help prepare the Eco10 portfolio have wanted to rotate exposure to the banking sector, dispensing with Santander and Sabadell and betting on two other titles for the autumn: CaixaBank, clearly the entity that has benefited the most from the rise in interest rates accelerates in the eurozone due to the high weight in its mortgage credit portfolio, and by BBVA, heavily penalized in recent months for its exposure to Turkey through Garanti.

“The sector should benefit from the rise in interest rates and the improvement in margins, although the increase in defaults and the economic downturn will also have a negative effect,” points out Jorge Lage, from CM Capital Markets. The already discounted rebound in defaults in the face of the escalation in prices that will affect mortgage holders and companies is the downside of the rate hike that is trying to chase down inflation. This same Thursday Christine Lagarde, president of the ECB, announced the largest increase in the history of the institution, of 75 basic points, and takes the official price of money in the euro zone to rates of 1.25%, levels not seen since 2011 .

CaixaBank has declared the greatest sensitivity on the interest margin. For each increase of 100 basic points, the entity calculates an improvement of 20% to 25% on this item of income. This represents some 1,700 million euros more interest margin. BBVA is the second that, in volume, will see its margin improve the most, above 700 million, with a declared sensitivity of between 15% and 20%.

So far this year, CaixaBank has once again become the most bullish value on the Ibex, with gains of more than 40%, thanks to the rise of more than 12% recorded in the last two sessions after the message much more Lagarde’s hawkish in which he anticipated more rises between now and the end of the year. Its PER stands at 8.3 times for 2023 and has an upward potential of 22% to 3.8 euros.

In the case of BBVA, it is no longer the most punished entity of the year (since it yields to Santander), with a fall of 8%. Its PER, at minimum, is around 5 times.

Spanish Food Becomes More Expensive Than The Large European Countries

Spain has gone from having the lowest shopping basket prices among the large European economies to being placed in leading positions. According to the Harmonized Consumer Price Index for Food (IPCA), prepared by Eurostat and which measures the evolution of prices taking into account the purchasing power of citizens on a 100-point basis, the Spanish market has reached a level of 124.13 points.

This represents a growth of almost 14% compared to the 109.63 it marked a year ago, when it was behind almost all the large economies in Europe. The shopping basket has thus become more expensive in Spain not only above the rest of the large European countries but also above the average, which has risen by 12.6%, to 125.2 points.

However, the rise in energy costs, raw materials and transport, among others, have triggered food inflation in Spain, causing distribution prices to now be above countries such as the Netherlands (124.09 ), Denmark (122.9), Portugal (121.4), Belgium (118.99), France (116.88), Italy (116.2) or Greece (115.89) , among others.

Spain is now slightly below Germany, whose ICPA has risen to 120.1, although it is below the European average, which has been set at 125.2 points. Above the European average have been traditionally cheaper countries, but which have now suffered the sharp rise in prices, such as Hungary , with an ICPA of 160.53; Lithuania with 148.3; Bulgaria with 145.82 or Latvia, with 144.1.

Despite the sharp rise in food prices, Spanish food distribution continues to be one of the most competitive in all of Europe. The existence of multiple factors in the business means that it is not a highly profitable market and where the only alternative is to opt for aggressive cost reduction policies to increase market share and margins, something impossible in the midst of this wave of growth of prices.

According to the calculations made by with data from the Mercantile Registry, the average profitability of the main Spanish supermarkets in 2021 was 3.03%. Furthermore, if the distribution margins between 2021 and 2020 are compared, it can be seen that the main Spanish supermarkets have lost profitability, except for Carrefour. In this way, the French chain went from 3.71% in 2020 to 4.6%.

Carrefour, the most profitable
Focusing on the data for 2021, Mercadona closed the year with sales of 27,819 million and a net profit of 680 million euros , which means that it had profit margins of 2.4%.

The Valencian chain is the leader in Spanish distribution with more than 25% of the market, according to the latest data from KantarWorlpannel. However, it failed to outperform Carrefour’s 4.6% return, even though this chain’s sales and profits were lower. Thus, Carrefour closed the previous year with sales of 8,241 million and profits after taxes of 382.7 million euros. On the other hand, Lild obtained a net profit of 150.8 million euros with a turnover of 4,825 million. This is equivalent to a distribution margin of 3.1%. Eroski had a return of 2.05% in 2021 thanks to profits of 105 million euros and a sales volume of 5,116 million.

In the case of the Día supermarket chain during 2021 there is no profitability as a result of its losses, which amounted to 257.3 million euros, which despite everything represents a decrease of 29.3% compared to the previous year. In Alcampo, the latest data published in the Registry is from 2020, when it achieved a net profit of 112 million euros and sales of 3,321 million, which established its profit margin at 3.3%.