The Euribor, the inter-bank interest rate, used by most Spanish financial institutions to calculate mortgage repayments, hit a record high on Friday as the European Central Bank hinted at a possible rise in interest rates across the euro-zone. The rate reached 5.418% on Thursday, its highest ever historical level, surpassing the 5.337% reached on 22nd August 2000.
The sharp rise was caused by statements from the president of the European Central Bank, Jean-Claude Trichet, on Thursday who said it may now be time for a 0.25% increase to the current rate, which remains at 4%. It would be the first such rise since June last year when the rate was increased by 0.25%.
Fortunately, when calculating mortgages, the average rate over the month is taken, meaning the level could even out throughout month, as it was not expected to remain so high for too long. However, the current rate is still worryingly inflated at 5.168%, just 0.08% off its record monthly high, again achieved in August 2000.
In monetary terms it will mean those with a 150,000 mortgage over 25 years which is re-calculated in June will have to pay around 58 more every month, nearly 700 a year.
The president of the European Bank came in for some harsh criticism from Spanish Prime Minister, Jose Luis Rodriguez Zapatero, on Saturday who blamed Trichet for the sharp rise in the Euribor, claiming he should be "more prudent" in his comments about interest rates. The attack came as Zapatero prepares to front-up to an economic crisis which is set to mark his second term in office. The country's economy is facing a steep construction slowdown, just as inflation is beginning to rise. However, the continued increase in world oil prices will only mean higher interest rates are more likely, as the ECB's mandate is to control inflation.
It was unwanted news for Zapatero who is facing growing criticism over the rising cost of living within Spain.
Fuelled by a soaring construction and property market Spain had enjoyed record growth over the last ten years. However, there were signs last year the bubble was about to burst, a prophecy which seems ever more realistic as households struggle to cope with rising inflation costs.
And things do not seem to be getting any easier for Zapatero as Spanish truck drivers joined fishermen on Monday in a nationwide protest at spiralling fuel prices. It is estimated up to 300,000 independent truckers will join in the strike across the country, with authorities in Ibiza warning islanders could face shortages of several key products, including petrol, a warning which saw long queues at many of the stations on the island.

AROUND THE ISLAND

Ministry to Investigate
The Environment Ministry at the Balearic Government is to open a separate internal investigation into supposed irregularities in the disposing of the soil excavated during the building of the roads. As reported several weeks ago, there is already a separate investigation taking place in which the judge hinted it seemed clear there was an agreement between the builders carrying out the project and the Matutes family to deposit the soil on their land in Playa den Bossa, which would then be used in the construction of the proposed golf course in the area.
Some of the department, headed by the director general, Josep Lliteres, visited the island on Wednesday to see the area for themselves. At the site he said there were clear signs to the naked eye an offence had been committed, and that soil mixed in with asphalt had been dumped on the land. However, he said an investigation would need to take place and the soil sent for analysis.
Although it has appeared obvious for quite a while that some type of deal was made between the two companies, it has always remained ambiguous as to what extent the previous administration played in the process. Lliteres stated that a full investigation was to be carried out to see if the Partido Popular, in Government until last May, turned a blind eye to the dumping of the potentially poisonous material, a clear breach of environmental policy.

Stinging Advice
Lots of sun cream and composure are the two things needed to avoid a summer of jellyfish stings, according to marine biologist, Josep Maria Gili. In an interview with the local paper, Diario de Ibiza, he revealed most stings were caused by people panicking when confronted by a jellyfish. He advised bathers to remain calm and swim slowly away from the creature. It could also be slowly pushed away ensuring it is only touched at the very top and all contact with the tentacles are avoided. He also said that covering yourself in olive oil would repel the pests, although sun cream was an adequate alternative.
He said he thought the decision by the Island Council to hire fishing boats to catch jellyfish would not prove cost effective. He said that most of the animals only came to the surface very late in the day when the sun had gone down, a time when the boats would not be in operation. He said the solution was complicated, but that studies needed to continue to avoid the plagues seen on the island last year.
Happily, leading experts have predicted a similar invasion this year is unlikely, and while they have advised swimmers to remain cautious, most anticipate a quiet summer out at sea.
However, if you do get stung this year here are some helpful tips to ensure the sting is treated appropriately. First, make sure you do not rub the area affected. Apply some vinegar to stop the nematocysts from firing new stingers, while carefully removing any 'gossamer' strings you can find. Finally very hot water will also help (but not burning). If the symptoms persist seek medical advice.

Smoking Deaths
The National Health Service is to launch a help-line from October which is to give advice on quitting smoking. The news comes just days after the release of startling figures which showed that 50,000 adults died last year in Spain as a direct result of primary or secondary smoke, including 1,000 in the Balearics. It is hoped the telephone line will help those unable to attend the group courses available in most health centres, although it appears a complete countrywide ban on smoking in public areas is still some years away.

Home Computers
Fifty-nine point nine per cent of homes in the Balearics have computers, according to new figures released on Monday. Of these 48.2 per cent have internet connection, an increase of 3.2 per cent from the previous year. The figures were very similar to the national average with 60.4 per cent of homeowners possessing a personal computer, and 44.6 per cent with an internet connection.

Council Heavily in Debt
The PSOE-run Island Council admitted this week that it had a deficit of 9 million, most of which had been inherited from the previous administration. The statement came after denials from the previous president, Pere Palau, who assured the public the coffers were in good shape when he was ousted last year. However, the Councillor in charge of the economy, Tomas Mendez, said this was not the case and the Council had been mounting up a substantial debt over many years, and it was now time to balance the books.
According to Mendez this would take around ten years. He added that it was now crucial the administration made an effort to ensure expenses did not exceed income, something that had been happening until now. He revealed that the Council would spend 10 million alone this year in subsidies and hand-outs to many social/health groups whom, without this money, would be unable to operate. He used the example of the Cas Serres residency which received 500,000 every year to cover their wage bill.

New Plans for Pipe
The gas duct, which is to take natural gas from Cala Gracio to the capital, will finally run parallel to the San Antonio-Ibiza road to ensure it passes through as little private property as possible. The original plans had the tube passing through several properties which would have meant Government expropriations, something which caused a great deal of controversy at the time, coming so close to the motorway scandal in which several properties needed to be demolished.
The director general for Energy at the Balearic Government, Maria Magdalena Tugores, said the design of the new plans had not been easy but she hoped they would please the majority. Nevertheless, she fired out a warning that this new project would have its disadvantages, the main one being a disruption to traffic on the San Antonio-Ibiza road whilst the new pipe was being laid. However she said this would only last part of the winter and the long term advantages far outweighed this minor inconvenience.
It is hoped the entire project will be ready by July 2009, an optimistic prediction even by Government standards. The underwater pipe will bring the gas to the Balearics from Alicante, stopping first in Cala Gracio, before heading off to Mallorca and eventually Menorca. The pipeline will initially supply only the GESA power station on the outskirts of the capital, to help minimise pollution in the production of electricity. However, it is hoped that in a few years time private homes will be able to tap into the energy source.

Umbilical Donations
Can Misses is set to become only the 4th hospital in the Balearics to carry out blood donations from the umbilical cord, it was announced last week. The hospital made the request towards the end of 2007, an application which has now been accepted. The blood will be taken to a bank in Barcelona and distributed around the world.
Like bone marrow, cord blood is rich in the blood-forming cells that can be used in transplants for patients with leukaemia, lymphoma and many other life-threatening diseases. Until now the blood has been discarded after birth.
Permission from the mother will be required, with doctors assuring new parents the donation poses no risk for either mother or baby.

Low Police Numbers
The local police force on the island has lost an astonishing 43 officers during the last year, 20 per cent of the total force. Ibiza has always been an unfavourable choice by most officers who see the high cost of living, added to the poor communication with the mainland, as reasons to stay away. The chief of police claimed this year was no different, and the forces on the island would have to once again make up their numbers by hiring inexperienced officers just out of the academy. This makes life more difficult for the entire workforce and is something which urgently needs to be looked at. He guessed there was currently a deficit of around 90 officers, with just three applications to come to the island having been made across the country.

Consul Visit
The Consulates of the United Kingdom, Germany and France met with Madrids representative on the island, Sofia Hernanz, on Tuesday. The meeting was the first contact Hernanz has had with the three Consuls since her inauguration last year. British Consul, Helen Watson MBE, said the meeting was simply a courtesy visit to prolong the continued good relations between the two.

Sales Delay
The summer sales this year will be pushed back to 28th July after a proposal from the retail sector was accepted by the Balearic Government. Any sort of special offers within the sector have to come during a certain period, set by the local island authorities. Normally shops are allowed to discount from 7th July. However, after a special petition by the shopkeepers on the island, the sales have been delayed three weeks, although they will remain the same in both Mallorca and Menorca.
The shopkeepers have always complained about the date, stating it came far too early in the season. They said the opportunity to discount meant the start of a price war which did not benefit any of the stores.
They also called on the authorities to keep a tighter control to ensure all shops were complying with the date bands. The Government admitted that at the moment they had just one inspector in Ibiza, who was naturally overrun with work, but that they were looking to employ several others.
The following day the Consumers Association on the island said the delays were exaggerated and would certainly not benefit the consumer.

Next Stop Milan
On Thursday the councillor for tourism, Pepa Mari, announced that low cost airline Ryanair is to begin flying to Ibiza for the very first time from October. The company is to begin an Ibiza-Milan route which is to run all year round on Tuesdays, Thursdays and Saturdays.
The managing director for southern Europe, Alessia Vivani, said she was confident the demand was there and that the companys aim was to transport 40,000 passengers during the first year. She added that other destinations had not been ruled out, and a comprehensive research was currently underway to find other routes. Prices will begin at 18, including taxes, for a one-way journey to the fashion capital of Italy, although prices will rise according to demand.

Price Increase
House prices on the island rose by 4.9 per cent during May, the biggest increase in Spain. The most expensive area was San Jose, where the price hit 4,628 per m2. This was followed on the island by Ibiza Town (3,803) and Santa Eulalia (3,477) with San Antonio (3,212) finishing bottom.

Rooney in Ibiza
The eyes of the British media were once again fixated on Ibiza last week as the Manchester United footballer, Wayne Rooney, enjoyed a four day stag party on the island. Staying at a luxury 25,000 a week villa, Rooney, accompanied by friends and family, enjoyed the delights of the island including a boat trip to Formentera.
The 17-strong stag group landed in Ibiza on Wednesday morning on an Easyjet flight from Liverpool. With the 22 year old was the player's father, Wayne Snr, 44, and his younger brothers, Graham, 20, and John, 17, as well as fiancé Coleen McLoughlin's father Tony, and her uncle, Sean McLoughlin, - who is believed to be the best man at the wedding this Saturday in the Italian resort of Santa Margherita Ligure.
Although heading out on the budget airline, no other expense was spared and Rooney insisted on picking up the bill for the trip which is expected to cost the star in the region of 350,000.
They were staying at a beautiful villa in Can Ramell where they spent the days relaxing by the pool.
The first night saw the stag partying in Mambos, before moving on to Linekers (owned by Wayne Lineker, brother of Match of the Day presenter, Gary), before they finished off the party in Eden, where Rooney was seen chain smoking and knocking back vodka red bulls.
The fun continued on the Thursday as the group rented a 60ft yacht, the Princesa Del Mar. The trip took in the beautiful beaches of Formentera, as the footballers friends and family enjoyed the crystal clear waters of the island. It was then back to the rented villa before another night of excess in Pacha.
However, the four day event ended quietly for Rooney as he spent the last two nights at the villa with his Dad and future father-in-law, before jetting back to a gloomy Manchester on Saturday afternoon.

Land Reform
The Town Hall of San Jose has received over 500 objections to the Land Use Reform which they presented in February. The plan is the urban blueprint of the municipality which, amongst other things, banned the construction of golf courses and marinas, and hopes to create at least 1,249,571 m2 of green areas.
The Councillor in charge of the reform, Josep Antoni Prats, said he had expected a sizeable response to the new plan and for that reason they had extended the deadline for objections, which officially closed on Thursday, from 2 months to 31 months. Still to be added to the number are those objections received in the municipal offices of San Jordi and Cala de Bou.
Prats said his team would now be working hard over the next few months to ensure all of the cases were studied, and that those who had objected were answered.

IBIZA TOWN
Mayans Confession
The bribery scandal involving some of the leading political figures on the island took yet another twist last week as the former general secretary of the PSOE party in Ibiza Town, Sandra Mayans, took to the stand. She told the judge she was involved in almost daily meetings to discuss the problem, months before the scandal was broken by a local newspaper, casting doubt on previous confessions by other members of her party, including the ex-Councillors, Pedro Campillo and Antonio Roldan, who assured the court they had not known of the scandal until it was broken by the el Mundo newspaper.
The case relates to the supposed payment of commissions to leading members of the PP and PSOE parties after the construction company, Brues SA, was given the contract to reform vast areas of the capital in the project known as Eivissa Centre. Recordings were made of several meetings between leading figures in which the bribes were discussed. Several of these encounters involved the current president of the Island Council, Xico Tarres.
Mayans told the judge that she trusted most of her fellow members, and genuinely believed the majority were honest. However, she added she could not guarantee there was no wrongdoing in the awarding of the contract to the construction company. She said she understood that it was her word against that of her colleagues, and it would be up to the judge to decide who was telling the truth.
Xico Tarres, the brains behind the project when mayor of Ibiza Town, claimed Mayans was confused, and reassured the public he had not been involved in any of the meetings in which the supposed bribes were discussed. He added that as far as he was concerned everything had been done by the book, and he remained confident the truth would eventually come out. He added that, unlike Mayans, he completely trusted all of his party members and it was probably better for her to leave the party if she felt that way. He blamed the lawyer of Roque Lopez, who first made the allegations, claiming he was taking everything out of context to corroborate his clients story.

SAN ANTONIO
El Punt Verd
San Antonio celebrated World Environment Day on 5th June by unveiling a new recycling centre, El Punt Verd, which the mayor hopes will put an end to the dumping of rubbish in parts of the municipal. The centre, located next to the water purifier in ses Paises, can be used to deposit all kinds of recyclable material including paper and carton, plastics, unwanted household appliances, metals, glass, tyres and batteries.
Mayor Sala hopes the new facility will help curb the growing menace of residential dumps, like the one in Montecristo. The facility will not be open to businesses at the moment, although that has not been ruled out in the future.
He claimed that the collection centre could save the Town Hall money. Less domestic rubbish would mean fewer trips to the rubbish tip located in Ca na Negreta, which was becoming more expensive every year.
El Punt Verd will be open from Monday to Saturday and consists of several skips which can be easily accessed by car.

Worker Injured
A 25 year old local man, working on the underground car park in the Plaza de Espana in San Antonio, had a lucky escape last week after he was buried under a truck full of paving stones on Wednesday morning. The accident occurred as he was unloading material from the vehicle. For reasons which are still not clear one of the hydraulic legs supporting the truck at the time gave way, tipping its entire load onto the unsuspecting man. Police officers and an ambulance rushed to the scene and began to help free the injured man who although taken to hospital, miraculously escaped with only a broken arm.

Station Opened
On Friday the Interior Councillor for San Antonio, Jose Ramon Serra, announced the opening of the municipal police station in the centre of town which would be used jointly by the police and Guardia Civil. This is the third year the facility will be available to locals and residents alike, and can be found on the ground floor of the old Town Hall building on the Passeig de ses Fonts. The station can be used by anyone wanting to present a denuncia, and will save making the trip to the station on the outskirts of town.
The service will be available during June and September from 8a.m.-3p.m. and in July and August from 8a.m.-9p.m.
Last year the station dealt with a total of between 150 and 200 denuncias every month.

SAN JOSE
Party Time
The first repercussions of the after hours ban on the island began last week, as officers in San Jose had to break up three separate house parties over the weekend. The opening of the major clubs over the last two weeks has seen a rise in private parties, which have so far all been successfully dispersed by the police. In all three cases the party organisers, which were located in Cala de Bou, Cala Conta and sa Caleta, co-operated with the police and although all were fined 60, no further action was necessary.
The authorities, pushed by the Island Council, decided to ban all clubs on the island from opening between 6a.m. and 4p.m. This new legislation did not apply to the opening weekend, with Space swinging into action at its usual time of 12p.m. However, this is sure to be a one-off, with all of the club owners confirming during the International Music Summit held on the island two weeks ago, that they would be abiding by the new laws. However, issues were raised during the summit with some fearing a ban would lead to an increase in larger, far less safe private parties for those wanting to continue with the fiesta, a concern which the authorities promised they would deal with having found a loophole in the law allowing them to disband the illegal gatherings.

DC-10 Fined
There are plenty of ways to know summer is here yet again, the most reliable in recent years being that the controversial club DC-10, situated close to ses Salinas, has once again started to receive denuncias. Not to disappoint, the club was given a total of three on its opening weekend. Within minutes of officers arriving at the premises, the first was issued for licence irregularities. The bar possesses a café-concierto permit, and so, in theory, is unable to carry out the functions of a discotheque denuncia number one.
Officers then noticed there were rather more clients inside the bar than the official maximum capacity of 65. Conservative estimates put the number inside the building at the time the officers visited at around 600-700 denuncia number two.
For the time being that was all, until several hours later officers returned after a complaint was received concerning noise levels and as if by magic denuncia number three. Some things never change!

SANTA EULALIA
Mains Supply
The construction and maintenance work carried out in Jesus has finally been completed with an official visit to the area by mayor, Vicent Mari. The main aim of the project, which ended up costing in excess of 1 million, was to improve the sewage system in the area and connect many of the properties, especially in es Cap Martinet, to the mains supply, in an attempt to reduce the number of sceptic tanks in the zone. In total around 200 houses will now be able to connect to the public sewer system, including areas such as es Puig d´en Vinyets, ses Torres, sa Careneta and Can Pep. Whilst the roads were dug up the authorities also took the opportunity to resurface 26,000 m2 of roads and build numerous pavements.

SAN JUAN
Benirras Work Stops
The controversial building work which was taking place in Benirras, inside an area protected by new Government legislation has stopped. However, the situation is still no clearer with the Island Council and Town Hall of San Juan still unable to see eye to eye on the matter. The mayor, Antoni Mari Mari Carraca, explained that the viewpoints of his technicians who had studied the case differed from those at the Council, and added he was trying to arrange a meeting between the two administrations to try and clarify the situation once and for all.
A total of eleven building permits have been granted over the last two years in the area, several of which were given days before new legislation was introduced classifying the area as a protected zone and banning all building work. However, the owners of the licences claim they still have the legal right to build, and have so far rejected all of the Island Councils proposals, which included giving them land in other areas.
Carraca confirmed the building work had stopped but claimed he had not forced the issue, and the decision to wind up had been taken by the constructor of the project.
This was confirmed the following day by the lawyer representing the owners of the eleven permits, who confirmed the owners of the land in question had stopped the work voluntarily on 1st June to abide by the legislation which prohibits building work during the tourist season. He went on to reveal that work had in fact already started on several other pieces of land in the area, a declaration later denied by the Town Hall.
The Island Council reacted to the problem on Monday by passing new legislation which reclassified six areas on the island to rustica once again, which would ensure urban building projects were unable to gain permits. Benirras will again be affected by the new legislation, which was a closely guarded secret by the Council to avoid any last minute permits being rushed through by the Town Halls.
The land affected by the new regulation includes areas in Na Xamena, Illa Blanca, ses Variades, Cala Tarida, Port des Torrent and Playa den Bossa.

FORMENTERA
Public Transport
Formentera launched its recently approved mobility action plan last week with a new service linking la Savina and es Pujols. The service will begin from the port at 6.40a.m. and travel, via Sant Francesc, in a complete circle making twelve different stops en-route. The journey time will be around 20 minutes with the service beginning its final run at 8p.m. This route will be backed up by several more punctual lines which, it is hoped, will ease traffic especially during the summer months.
The councillor for transport, Josep Mayans, admitted last week something needed to be done and this was the first step in trying to reduce the traffic problem on the island. He said they needed to be more environmentally conscious, and now was the time for action.
The news came as Mayans confirmed the Consell had decided to limit access to the popular ses Illetes area for the very first time, in an attempt to ease the pollution caused by the arrival of thousands of cars and mopeds during summer. He announced that the company, Ibifor, would be controlling access to the protected zone, adding that there were officially 488 spaces for cars and 1,464 for mopeds. After these were filled, it would be a simple one out, one in, policy.
For the first time vehicles will also be charged to use the facility, with cars having to pay 4 per day and mopeds 2. Residents on the island will be able to claim a 50 per cent reduction, while workers in the area, public transport and suppliers will be able to enter free of charge.

Recycling Increases
Formentera recycled a total of 23 per cent of its rubbish during the first five months of the year, according to the councillor for the environment, Silvia Tur. The figures are even more impressive considering the new system was only put in place towards the end of March.
In comparison to 2007, between January and May normal rubbish decreased from 2,119 to 1,628 tonnes, whilst during the same period recycled rubbished increased from 160 to 379 tonnes. The rise was put down to an extensive campaign carried out by the Island Council, along with an increase in the number of recycling containers on the street. Tur declared she was delighted with the results but that more work needed to be done and the public still lacked information, especially on exactly what items of rubbish could be recycled, and in which bin they needed to be placed.
Detailing the specific increases she revealed that the recycling of glass had grown from 64.2 to 105.2 tonnes, while paper and carton was up from 92.4 to 212.2 tonnes. Finally, plastic packaging was collected for the first time with 30.6 tonnes gathered since March.

CRIME & INCIDENTS
Arsonist Attack
A hotel in ses Figueretes had to be evacuated in the early hours of Thursday morning after fire ripped through the bar next door. Fortunately no-one was seriously injured in the blaze, and although one tourist was taken to hospital for minor cuts on his feet and smoke inhalation, he was released during the morning.
Police investigating the incident believe the blaze was started intentionally and witnesses reported seeing a man dressed in white trousers and a dark top, locating a box outside the bar, Comic, before running into the night. Minutes later, at around 5.10a.m., an explosion was heard, and the fire began to take hold helped by the cane and plastic decoration in the terrace of the bar.
The fire service was quickly on the scene and helped in evacuating the 63 guests staying in the Don Quijote Hotel located next door. The blaze continued and took a total of 21 hours to be extinguished by six firemen. The guests were then allowed back in their rooms, with those on the first and second floors relocated to different floors.
Police revealed the cardboard box contained a home-made incendiary device made with petrol, although they were quick to deny the use of any kind of explosive equipment.
The owner of the bar, who was one of the first on the scene, said he had no idea who could have carried out the attack.
Fortunately the initial damage was to the covered terrace of the bar, with the interior only slightly affected.

Drink Driving Arrests
The capital intensified its clampdown on drink driving last week, with over 40 people arrested during the week. Police officers set up various roadblocks, with eight drivers testing positive on the first day alone. The controls for both alcohol and drugs were carried out, as the tourist season began to warm up after the opening of all the major clubs during the last two weekends.
A source at the Town Hall said officers would be carrying out three separate daily controls as part of a nationwide campaign. This would continue until 15th June, as long as the officers were not needed in other areas.
The controls were mirrored in all of the other municipalities across the island, as the island began to show it was seriously attempting to fight the age old problem. Amongst those arrested was a British tourist who crashed his Mercedes 220 Compressor into a garbage truck and then fled the scene. However, the culprit was soon picked up, and later failed a breath-test at the station.

Boat Sinks
The bad weather on Thursday night caused a taxi-boat transporting passengers from Ibiza to Formentera to crash into rocks as it left the port of Ibiza. The four occupants were quickly rescued by maritime services, and although all were taken to Can Misses, three were released soon afterwards.
The accident occurred as the twelve metre vessel, able to carry up to twelve passengers, was on its way to Formentera. As it drew level with Playa den Bossa the captain veered off course due to the driving rain, causing the boat to collide with the small islet, es Malvins. The four occupants, the captain and three visitors from Marbella, climbed on to the islet from where the captain called for help. A rescue boat was sent out from Ibiza to collect the shaken passengers, by which time the vessel had sunk in three metres of water.
Both the owners of the boat and the Port Authorities blamed the poor weather for the accident, and claimed the captain had become disorientated. However, in comments to the television station IB3, one of the passengers revealed the captain had turned off the radar system as it was dazzling him. An investigation has been launched into the exact cause.

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