Royal Message
The King’s traditional Christmas speech delivered at 9 p.m. on Christmas Eve concentrated on the economic crisis as he encouraged politicians, as well as social and economic groups, to “pull in the same direction”. With Spain keen to play a larger role on the world stage, and new president Barack Obama set to take office next month, King Juan Carlos also called for a "new push" in improving relations with the United States.
He continued, “The current economic crisis shows how much we depend ever more on the rest of the world, and we have to know how to skilfully manage the defence of our interests in the world. For that, today more than ever, Spain’s international role is important, in our institutions, companies and professionals, to ensure our growth, well-being and security. We must also give a new impetus to our relations with the United States, strengthen our solid ties with Latin America and with the Mediterranean, and maintain our profile in Africa and Asia."
However, the bulk of his speech centred on the current economic crisis, making special mention to the thousands of people across the country who had lost their jobs. He said that "there were no magic recipes" to solve the downturn, but "together we'll be able to conquer problems and difficulties if we act with realism, rigor, ethics and great effort, always putting the general interest above the particular, seeking agreements and solutions with generosity, responsibility and broadmindedness."
The Monarch said that only collaboration and dialogue with our national, European and International authorities would hold the key to recovering confidence, in backing the daily activity in our productive industry, which would reach our families and citizens. He continued by echoing the words of the prime minister, Jose Luis Zapatero, in demanding tougher international regulations, in defending stability, and controlling the financial sector around the globe.
The King paid homage to those who were currently serving their country abroad in peace-keeping missions, making special mention to those who had paid the ultimate sacrifice during 2008.
He thanked France for its continued support in the fight against ETA which resulted in the arrests of three top leaders of the Basque separatist group this year, claiming he was “convinced that with unity, will and determination, the end of terrorism is coming closer and closer".
He finished by paying tribute to the 30th anniversary of the Spanish Constitution, and the rapid progress and modernisation which had taken place during this time.

AROUND THE ISLAND

Bids Accepted
The Airport Authority, (AENA), has put out to tender the renovation work on the terminal building which it hopes will adapt the airport to receive the demand of traffic expected in 2020. The contract is worth just over €71 million and will take around 34 months to complete.
AENA is predicting the airport will have to support a total of 7 million passengers in ten years time, approximately 50 per cent more than that received this year.
The principal objective of the work will be to increase the main building to the north east to ensure the arrivals lounge can be extended, guaranteeing a total of nine luggage belts, whilst adding a further two departure gates on the first floor.
The building will also be increased to the south east, adding a further 15 check-in desks, taking the total to 66. The space created on the first floor as a result of this will be dedicated to offices. The ground floor area will also be increased to ensure there is enough room for queuing.
The project also includes the building of air-bridges to enable passengers to embark and disembark straight onto the platform, work which will also increase the departures lounge by 600m2. A new commercial area will also be included on the first floor.

Purified Water for All
On Friday the Balearic Government announced that it would begin work in the next four months on building a water network it hopes will take purified water to all corners of the island. The ambitious project, which is expected to cost in the region of €13.5 million, is being financed by the department of rural and marine affairs, although the project is being organised by the environmental department.
The aim of the scheme is to lay over 40 kilometres of giant piping which will transport water from the purifiers of Ibiza Town and San Antonio to the rest of the island.
The first pipe will go towards San Juan, via Santa Gertrudis and San Miguel, in addition to two 6,000 litre deposits which will help to store the purified water. The second pipe will head towards Playa den Bossa, the third to Cala de Bou and the fourth to San Rafael. Several deposits of between 2,000 litres and 6,000 litres will also be built in strategic locations to help with the distribution. Work will begin where least inconvenience is caused, staying clear of the tourist hubs, as it is expected to continue through the summer.
The network will include a control centre which will be able to redistribute water in the case of one of the purifiers breaking down, or there is a problem with a deposit.
So far, Ibiza Town, Santa Eulalia and San Jose have all signed up for the scheme, with the two remaining Town Halls set to adopt the programme in the near future.

Water Levels
Despite all of the rain during November, water reserves on the island are at their lowest level in four years. At the moment the level recorded at the end of November is just 55 per cent, compared to 74 pr cent in 2007, 61 per cent in 2006 and 59 per cent in 2005. However, the figure does not take into account the intense rainfall of December which will undoubtedly improve the percentages.
In Mallorca, by contrast, levels have reached 55 per cent, the highest figure for the last four years. This was helped by a November where it failed to rain on just four days of the month.
The Balearics also recorded slightly higher temperatures during 2008 than the previous year, with Ibiza again leading the way with an average temperature during 2008 of 17.9ºC, compared to 16.9º in Menorca and 16.3º in Mallorca.

Hotel Improvements
The Balearic Minister for tourism, Miquel Nadal, has confirmed he is trying to introduce new legislation which will make it far easier for hoteliers to reform their properties. The moves come as the islands attempt to do battle with newer, more competitive destinations. The minister has made it clear that Balearic hotels need to improve their facilities in order to contend with the increasing demands of the modern day tourist. However, this is the first time that positive action has been taken by the Government to facilitate the process for hoteliers.
In addition Nadal announced that those wishing to improve their star rating will be able to increase the size of their properties to add complementary services and facilities.

Rubbish Figures
Levels of recycling on the island have remained similar to that of last year, as it seems both the Island Council’s and Town Hall’s recent marketing campaigns have fallen on deaf ears. Up to November this year residents had produced a massive 127,000 tonnes of rubbish, whilst producing just 9,008 tonnes of recycled material, 6.6% of the total. In 2007, 135,000 tonnes of rubbish was sent to the tip, 4% more than this year, whilst 1.6% less was recycled during the same period.
Santa Eulalia remains the biggest producer per head of rubbish, with its 28,000 inhabitants creating 26,000 tonnes of rubbish, whilst Ibiza Town’s 48,000 inhabitants produced just 27,000 tonnes of rubbish.
Where there has been some progress is Formentera, where a total of 5,444 tonnes of rubbish was sent to the dump, 2,500 tonnes less than last year, whilst 780 tonnes was recycled, 14% of the total.

Council Support
The Island Council closed the political year by demanding a Foreigner’s Office (oficina de Extranjería) be opened on the island. In the last session of the year the president, Xico Tarres, (PSOE-ExC), received the full support of the opposition party (PP) in making the demands it believes are now a necessity in Ibiza.
The comments come just weeks after the minister for public administration, Elena Salgado, revealed the Balearic Government had no intention of opening up such an office on the island. Currently all immigrants wishing to apply for N.I.E numbers, residency and other administrative papers have to do so at the local police station, (Comisaría de Policía). This causes great delays in the processing of enquiries, and undoubtedly results in hours of queuing during most of the year.
A spokesman for the Island Council revealed that the huge increases during the last five years meant they would be putting added pressure on the Balearic Government, adding that a massive 24.7 per cent of the local population were now foreigners - close to one in every four residents. This situation has come about due to the huge increase in immigration over the last few years, which has seen the immigrant population grow by 62.1% between 2002 and 2007.
The PSOE-ExC party announced they would also be bringing up the matter in a Parliamentary debate scheduled for February, to bring the situation to the attention of the Central Government.

Fatalities Remain Low
According to the Balearic Traffic Authorities there are currently 14 black spots on the island’s roads which have seen 55 serious accidents during 2008 resulting in two deaths and 90 injuries. A black spot is defined by the department as any stretch of road where there have been three or more serious accidents.
The two most notorious spots in 2008 were the 300-metre section from kilometre 2.7 on the San Antonio-sa Carroca road, and the 400-metre stretch on the Ibiza Town-airport road from km 5.8. There were a total of six accidents on each road, with twelve people injured on the former, and nine injuries and a fatality on the latter.
The third worst spot is on the Ibiza-Portinax road from km 2.1, where there has been one fatality and nine injuries reported. This road also makes up the 4th and 5th positions on the table at kilometres 2.8 and 3.8 respectively.
Regrettably, 2008 saw the first fatality recorded on Ibiza-San Antonio road since its construction. However, road deaths remained low over the course of the year with 15 reported, one more than last year. However, the figures remain a vast improvement from those recorded in 2005 (31) and 2006 (27).
In 2008 eleven of the victims were male, with four female fatalities, ten of which were Spanish and five foreigners. In addition three people were knocked down and killed on the island’s roads.

Balearic Ads
Tennis World Number One, Mallorquin Rafael Nadal, will receive €2 million to front an advertising campaign for the islands which will be launched during the first five months of the year. The campaign will cost a total of €5 million and centre on a television advert which will be broadcast during prime time in Germany, the United Kingdom and Spain, and in which Nadal will encourage people to visit “his home”, the four islands. Accompanying Rafa at the signing was regional Minister for Tourism, Miquel Nadal, and Mateu Cañellas, the Minister for Sports.
The ad was shot during an eight-hour session in a Palma studio, and was described by Nadal as the hardest thing he has ever had to do in his professional life.

Falling Revenue
It seems the collapse in the construction industry will not only affect the private pocket in 2009. As the last of the Town Hall budgets was released, it seems all are predicting a reduction in the taxes paid for planning permissions. Just two years ago money gained from these taxes accounted for about one third of a Town Hall’s annual revenue. However, in 2009, this amount will be reduced to just 10 per cent.
There are, as always, some exceptions with San Antonio actually expected to gross more next year than in 2008 due to the building of the gas duct, which will net the municipal coffers to the tune of €1 million.
San Jose will also be somewhat less affected, with a €50,000 reduction from this year to €1,025,000.
However, the situation of both municipalities is in distinct contrast to Santa Eulalia where revenue from building taxes is set to fall by 43 per cent, with Ibiza Town also suffering a not so spectacular, but equally painful, reduction of 25%.

Tarres Comments
The Island Council president stepped into the row over a radiotherapy unit in the new hospital by declaring he could not understand the stance adopted by the Balearic health minister, Vicenc Thomas. Xico Tarres said that Ibiza desperately needed the unit because of the size of the population and due to its insular nature. In comments to Radio Ibiza Ser the president confirmed there was a political agreement above the minister, and he remained confident the unit would be installed.
Meanwhile, the Ibiza branch of the Asociacion Española Contra el Cancer (AECC) tried to distance itself from the report brought out the previous week by their counterparts in Mallorca. The group issued a press release on Tuesday stating that they had not collaborated with the study which hinted Ibiza did not have enough cancer patients to fully utilise a radiotherapy unit. They claimed the data used had been incomplete, and backed the installation of the unit in the building of Can Misses II.
Whilst talking about the new hospital, President Tarres confirmed that thanks to the rapid work of those dealing with the project construction would begin in 2009.
He continued by declaring himself happy with the treatment received so far by the Balearic Government, highlighting the increase in funds for public transport which have increased spectacularly from €350,000 to €2 million. However, he said there was still some way to go before the Council received the €5 million necessary to properly finance the services provided.

IBIZA TOWN
Port Delay
The president of the Balearic Ports Authority, Francesc Triay, claimed in a statement on Monday that he was confident the work on the new port in Ibiza could begin during the second semester of the year. In his speech the president said 2009 would be an important year for the island, and hoped the political discussion about the viability of the port could be resolved soon, adding that if an agreement was reached soon, work would start in July.
When asked if he realistically believed the project could begin in just six months, he replied that it all depended upon how quickly a decision could be taken, adding that the alternative project proposed by the ExC party had been ruled out by technicians working for the Port Authority as not viable.
However, what has still not been ruled out by Triay is some kind of reduction to the 80,000m2 platform destined for es Botafoc.
For his part the Island Council president, Xico Tarres, said the work was very necessary, whilst accepting the project would create a high number of jobs at a critical time for the economy. He added that there had been an agreement before the elections with the ExC party, and he hoped everyone kept to the deal.
Additionally, the PSOE-party issued a statement on Friday claiming the reforms would be carried out whilst paying “a total respect to the environment”.

Council Help
The dispute over the capital’s new bus station has finally been resolved after the Island Council promised to pay the tax for using the facility. The Town Hall had originally announced it would be charging each bus around €50 every time they entered the central station. This was described as extortionate, and the main bus companies on the island threatened they would not be moving to the new station, close to Bulevard Abel Matutes, if a more agreeable solution could not be found.
The mayor, Lurdes Costa, explained at the time that the problem was that the Town Hall had received no financial help in the building of the station, unlike San Antonio, and so therefore had to rent the station to the company who had built it, in order to cover the costs. In the original contract a price of €50 was agreed, although Costa later claimed this could be modified.
Just as it seemed no solution would be found the Island Council stepped in and offered to pay the tax, although at a reduced rate, the amount of which was not revealed. A spokesman for the Council said the administration had made the offer in order that passengers would not have the tax added on to the price of their bus ticket. The idea of the station was to make public transport more attractive and comfortable, but this had to come at a competitive price.
Costa, for her part, said she had never doubted a solution would be found but that firms on the island were poorly accustomed, and that in the majority of municipalities across the country companies had to pay some kind of tax to use the local bus station or highway.
She explained that the actual bus station was finished and it only remained to complete work on the two office towers, which would be finished by July. She said the delay had been caused by the decision to halt work whilst a decision was taken into whether the Law Courts were to be moved to one of the towers. This would have meant alterations being made, so it was decided to stop work. In the end the Courts will not be moved there, and the two towers will remain office space.

Property Falls
The price of property in Ibiza Town has fallen by 7.2 per cent, according to a study carried out by idealista.com, the leading real estate website in Spain. However, the survey carried out on 1,678 properties across the Balearics, also revealed the price per square metre also remained the highest in the island’s capital.
According to the website the average property price in the capital is €3,014 per m2, way above that in Palma (€2,363) and Mao, Menorca (€2,171).
The majority of the fall in price occurred in the last three months of the year, with 3.7% knocked off the value of the average property.
However, prices in Ibiza Town are still way below those in Barcelona (€4,361) and Madrid (€4,044), which fell 8.6% and 5.3% respectively over the year.

The Hard Way
The Mayor of Ibiza remains confident the land on the outskirts of the capital known as ses Feixes can remain as it is now. The land has been at the centre of continued arguments during the last few years, as the owners pursue building licenses, with the Town Hall attempting to keep the area green.
Lurdes Costa said money would be arriving from the Central Government to help purchase the land, with forced sales not being ruled out. It will then be up to the Balearic Government to negotiate the deal, which it is estimated will cost in the region of €24 million. The mayor said she remained confident the situation could be solved “one way or another”, claiming the landowners had so far made no attempt to negotiate.
Costa also claimed she was delighted a solution had finally been found for the location of the water purifier. The wrangle, which has being going on for almost twelve years, seems to have been solved after the Island Council purchased the area known as sa Coma for the purifier. She added that she realised the building of the new purifier would take at least three years, and that she hoped the current maintenance programme being carried out on the existing purifier would ensure it functioned correctly in the meantime.

SAN ANTONIO
Tourist Places
The councillor of the planning department, Josefa Costa, revealed her administration was studying the possibility of banning the re-classification of tourist places to residential ones inside the town centre.
According to Costa there around 5,000 hotel beds within the urban centre, the majority of which are rated as 1-star. As holidaymakers become more and more demanding there is a strong possibility most of these will become obsolete in the years to come. This raises difficult questions for the Town Hall. However, Costa said the plan was to try and maintain all of the beds, as they create business within the town centre and movement during the summer months. Instead, the hotel owners will be encouraged to try and improve their product so as to ensure the town centre does not become outdated.
The Councillor explained that the situation of the hotels in the centre of San Antonio was very different from other areas, as most were in residential areas. This means that currently those who want to turn their hotels into private residences are able to do so fairly easily. This would create its own additional problem as most of the hotels were built during the 1970s and do not comply with the current land legislation on height or volume. However, Costa is looking to bring out new regulations which will prevent any re-classification and ensure tourist places remain widespread throughout the town centre.

One Winner
A family in San Rafael was celebrating last week after they purchased a winning ticket on the National Lottery on a recent trip to Barcelona. The ticket (32.365) ensured the owners picked up €300,000 in prize money. Lady luck was less kind to others, with the Balearics as a whole suffering one of its leanest years in recent history, with just one administration in Palma selling any of the big winning numbers.

SAN JOSE
Bus Service
The Town Hall will be putting on a special free bus service tonight to link the town with San Antonio and encourage revellers to leave their cars at home. The route will link San Antonio and San Jose, passing through Cala de Bou. The first will leave San Antonio at 12.30 a.m. with the last ride leaving at 5.30 a.m., with the buses leaving the centre of San Jose every hour on the hour starting at 1 a.m. and finishing at 6 a.m.

CRIME & INCIDENTS
Seven Year Sentence
A former deputy commissioner of Balearia, the ferry company which runs several routes from the island, has been sentenced to a total of seven years in jail for various drug offences. Perfecto Cortes was arrested back in February 2006 when he was disembarking a Balearia ferry, with the captain, in the port of Ibiza. A police search on the company car he had been using on the trip to the mainland uncovered a total of 3.02 kilos of cocaine, with a value of €97,482. Also arrested was Miguel Fernandez, who had accompanied Cortes on the trip, and Fernandez’s wife, Maria Josefa. Both were accused of distributing the drug on the island, crimes for which they have received nine years, and nine and a half years, respectively.
It is believed that Fernandez had contacts in the capital, and began to involve Cortes due to his connections in Balearia. It transpired during the trial, held last year, that the latter was addicted to cocaine and needed the money to fund his dependency.
A later search of the two properties owned by the men uncovered over €22,000 in cash, which police believed had been collected after the sale of drugs.

Boat Fire
Police were investigating a fire they believe was started intentionally on board a boat. The blaze took place at around 9 p.m. on Saturday night aboard the 13-metre vessel, “Arig”, whilst it was docked in San Antonio marina. Fire crews soon managed to bring the blaze under control, but not before they had cut the mast to ensure it did not fall and set the boats on either side, alight. Some damage was caused to the neighbouring boat before Arig was towed to safety. However, the blaze aboard the German vessel soon began again, and resulted in the boat sinking several hours later.

Patient Jumps
A Moroccan man lay critically ill in hospital on Saturday after falling from a third floor window in Can Misses. The man was being treated for mental problems when, for reasons still unknown, he jumped onto the ledge of the third floor room at the hospital. However, while doctors were trying to coax him down he lost his balance and fell to the ground, severely injuring himself. He was immediately rushed to A&E where he remains in intensive care.

Xmas Stabbing
A 43-year-old local man was arrested on Christmas morning, after stabbing his wife twice during an argument. The incident occurred at around 1.30 a.m. on Christmas morning after the couple had enjoyed the traditional Christmas Eve feast at their home in calle Balears in the capital. The woman underwent minor surgery to clean and dress the wounds but was soon released, with doctors explaining that no vital organs had been in danger.
Her husband told the judge he had been drinking heavily before the argument took place, and deeply regretted the incident.

Fight Continues
The fight against drugs continued last week with the arrest of five people accused of distributing cocaine to the island. The investigation into the group began back in July this year and ended with a married couple, their two sons, and another man being arrested in Valencia on Friday.
Although details of the other arrests were kept secret, police revealed how the couple had been detained in Manises Airport, in Valencia. A search revealed they were both carrying 1.6 kilograms of cocaine in the heel of their shoes, whilst another 700 grams was found in a pair of shoes hidden in their luggage.
The couple made regular trips to Buenos Aires in Argentina, where they collected the drug and picked up the specially modified shoes which had a false heel, ensuring the safe transport of the drug. They then distributed it in areas of Valencia and on the island, where the fifth man arrested, lived.
This ends an intense year which has seen a record number of arrests, including that of the two Ibicencans found 11 miles off the coast with 2.1 tonnes of hashish.

Nativity Vandals
The Christmas figures in Parque de la Paz have been vandalised for the second year in a row. Neighbours reported how the baby Jesus had been “pulled apart”, whilst several figures were thrown into the water. The nativity scene will now be withdrawn, with the Town Hall confirming it would probably be located somewhere new for Christmas 2009.

NEWS FROM THE MAINLAND
Flying Visit
Spain's defence and foreign ministers paid an unexpected Christmas visit to Spanish troops serving in Afghanistan, on Tuesday. For the two ministers, Carme Chacon and Miguel Angel Moratinos, this was their third visit to the war-torn country where around 750 Spanish troops are currently serving in NATO's International Security Assistance Force, (ISAF), fighting against the Taliban.
She said a tactical re-think about the Afghanistan situation was needed, and expressed her faith in the politics of new US president, Barack Obama.

FINANCIAL NEWS
Pretty Poor
Just weeks after the national budgets of all the autonomous communities were announced, it became clear the Balearic’s quota was way below that of the rest of the country. Only Madrid (€3,196/inhabitant) and Valencia (€2,939) have less funds per inhabitant than the four islands, with the Balearics being given a total of €3,322 per inhabitant, way below the national average of €4,285.
Top of the pile comes the autonomous region of Navarra, which will have a budget in 2009 of €6,948 per person, followed by Extremadura (€5,264), and the Basque region (€4,870). However, the good news for the Balearics is that this is a slight improvement from the previous two years when the islands lay second to last.
The financial plans do not involve money received from the central Government, where it is hoped the region can improve on its mediocre figures.
The news came as Carles Manera, the Balearic minister for the economy, announced that corruption and poor management under the previous PP-run administration had left the Balearic Government with a debt of €150 million.

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