May 12, 2008

You're watching the articles of Euribor for the day on May 12, 2008.

The wages of June.

On labor issues, I have lots of relationship with several companies, and especially with the financial departments of these. Is that for a while, all those related to the building or the providers of these sectors, is costing them a little make their payments a day, either by the lack of turnover, by payment problems relating to their customers , Or simply for the disservice they are doing business and how Credit Collateral, which are insured by limiting the credit granted to customers who are building on a unilateral basis.

We see here a new party involved in cutting the funding to the construction sector, customers no longer buy (first track cut), banks will no longer grant them credits (second route cut), and the last track, which was the Financing via suppliers, also is cutting the tap because it calls for the companies announcing the reduction of security of these loans are secured, afraid to its suppliers to finance road charges to 90, 120, or 180 days.

The only way of funding for these companies, is via its own resources, namely those that are partners who provide the capital necessary to continue the activity, but the truth is that I do not know if the partners are willing to re-invest money they already had in their private coffers after these years of glory, in a business that today seems a little layer fall.

As if all this were not enough, arrives next month for poisoning a gift from the government, in the form of return of income. If yes, the famous 400 € Zapatero. At the employee will do very well that during the month of June will join him pay extra, usually the normal amount of payroll, plus the 6% which is retained in the concept of social security, payroll and normal flow and pays 200 € that the government does not provide for the summer, do your accounts gentlemen ....

At the corporate level is not as nice as they are the companies that advance money for 20 days, the state will leverage on the companies for 20 days to satisfy the citizen worker. The cash to pay for these extras come from the pockets of the companies on June 30, and on July 20, to make payment of VAT and personal income tax, no longer admitted.

For a company of about 30 workers with a net of 1,200 € per head, the cash spent on direct payroll is approximately € 36,000, € 18,000 more social security, some 54,000 €.

This month of June will be converted into 36,000 + 18,000 + 38,500 € (approx. extras) + 6.000 € for ZP, almost € 100,000

Workers who are in businesses where they have gained these past few months later, they start to catch the males, because next month can be especially hard, to more than one will give you a heart attack, and as the banks know it, they change their strategies and appear holders who say Banks and boxes in favor of putting life insurance savings to its customers, where they literally said:

"Like someone who wants to provide sufficient liquidity for their heirs to the succession and donation tax, as well as anyone wishing to ensure payment of a mortgage or loan, in case of death."

Finally, let's look at the usual summary of news: