martes, 27 de agosto de 2013

Current Affairs: Spanish austerity comes to tomato-throwing festival




Spanish austerity comes to tomato-throwing festival



Buñol is bracing itself for a fresh eruption of squishy anarchy on Wednesday, when thousands of revellers will cram into the streets of the small Spanish town to join the famous annual tomato-throwing festival known as the Tomatina
But this year, for the first time, the boisterous participants will be charged an entry fee of €10 in a shift that is being seen as a potent symbol of Spain’s economic crisis and the financial malaise that has gripped so many of the country’s cities and villages.
Held every last Wednesday in August, the festival attracts huge crowds of locals and tourists who spend a frenzied hour chucking truck loads of over-ripe tomatoes at each other. It ranks as one of Spain’s most popular local festivals, along with the running of the bulls in Pamplona, and has spawned similar tomato-throwing parties in the US, Colombia and even China.
This year, however, the red-tinted festival comes at a price. For the first time since the Tomatina was launched almost six decades ago, the city has decided to demand an entry fee. The privileged few who ride into the mayhem on the back of one of the tomato trucks (and get to throw the first missiles at the defenceless crowds below) will have to stump up no less than €750.
City officials say the move reflects the need to limit the number of visitors and ensure safety, but they admit that there is also more pressure than in the past to balance the municipal books.
“The Tomatina costs us about €150,000, so with the new entrance tickets we will more or less cover our costs,” says Rafael Pérez, the local councillor in charge of the festivities. The city has sold all 15,000 available tickets in advance, with another 5,000 free slots reserved for locals.
Mr Pérez says the new regime was brought in not least after the experience of last year, when almost 50,000 visitors packed into Buñol’s narrow streets, many of them disappointingly far from the action. Safety, he adds, is the main reason for limiting the numbers and charging a fee, but concedes that financing local festivals like the Tomatina was easier during the years of Spain’s building boom, when local councils were awash in property taxes.
“Everyone is doing badly at the moment,” says Mr Pérez. “But we have debts of only €1m compared with an annual budget of €8m. That is much better than most of the surrounding villages. We could still finance the Tomatina even without the entry tickets.”
His assurances, however, have not stopped the Spanish media from warning that Buñol’s new entrance limits mark a first step towards the “privatisation” of the country’s beloved local festivals. El País, the daily newspaper, described the new regime as “a great metaphor for the economic crisis that is crippling Spain”, drawing an arresting parallel between the bursting of ripe tomatoes and the bursting of the country’s real estate and debt bubbles.
According to official data, local councils had amassed total debts of €42bn at the end of last year – sparking a funding crisis that has forced the worst-affected towns and cities to slash even basic services.
In the case of Buñol, however, the new entrance fee will not be used to pay off debts, but to ensure that the Tomatina produces an even more spectacular mess than in the past. “The more money we raise, the more tomatoes we can buy,” says Mr Pérez.

miércoles, 21 de agosto de 2013

Finance&Economics: Slavery in the City



Slavery in the City: Death of 21-year-old intern Moritz Erhardt at Merrill Lynch sparks furore over long hours and macho culture at banks

Young German worked until 6am for three consecutive days before collapse at home in east London

Serious concerns have been raised tonight about the punishing hours endured by interns at City investment banks following the death of a young Bank of America Merrill Lynch employee.
Moritz Erhardt, 21, was nearing the end of a seven-week internship in London when he collapsed at home after working until 6am for three days in a row.
His body was discovered by his flatmates. The circumstances of his death are unknown, but police are not treating them as suspicious. Some reports suggested that Mr Moritz, from Freiburg, south-west Germany, was epileptic.
Around 300 interns working at various banks stay at the Claredale House student accommodation complex in Bethnal Green in east London for between seven and 10 weeks over the summer. One intern, who did not want to be named, told The Independent those in Mr Erhardt’s investing banking division group faced the longest hours.
He said: “We all work long hours, but the guys working regularly until 3am or 4am are those in investment banking. People working in markets will have to be in at 6am but not stay as late, so what time you can leave the office depends on your division.
“You’re only doing it for up to 10 weeks so there’s a general acceptance of it. I see many people wandering around, blurry-eyed and drinking caffeine to get through but people don’t complain because the potential rewards are so great. We’re competing for some very well-paid jobs.”
Another intern living at Claredale claimed that Mr Erhardt, who had been earning £2,700 a month or £45,000 pro rata, collapsed from exhaustion. “He apparently pulled eight all-nighters in two weeks. They get you working crazy hours and maybe it was just too much for him in the end,” they said.
Users of the popular finance blog wallstreetoasis.com insisted Mr Erhardt regularly worked long hours, with his final three days consisting of 21-hour stints in the office. One said: “He was found dead in the shower by his flatmate. Intern at BAML who went home at 6am three days in a row.”
Mr Erhardt was found last Thursday around 8.30pm and was pronounced dead at the scene. His parents are believed to be in the UK where a post-mortem and inquest will now take place.
The London-based cardiologist Dr Aseem Malhotra spoke of the health risks to which young banking interns are exposed. He said: “Although we don’t know for sure what caused such a tragic death, we know that working excessive hours, especially night shifts, is an extra risk to health.
“Last year the BMJ [medical journal] published the largest and most comprehensive review of over two million people concluding that those working shifts and especially night shifts were at significantly increased risk of heart attack and stroke. It’s probably related to a combination of sleep deprivation and added stress.”
Bank of America Merrill Lynch said it could not comment on the claims about the hours that Mr Erhardt had been working. John McIvor, head of international communications at Merrill Lynch, said: “All the rumours and comments are just that. We will have to wait and see what the post-mortem examination says.” He added: “Our first thoughts are with his family and we send our condolences to them.”
Mr McIvor refused to say whether or not it was common for staff to work through the night. He said: “I have not got any comment to make on our work patterns.” But he added: “Do people in investment banking sometimes work long hours? Yes they do.”
Mr Erhardt appears to have been one of many interns caught on the so-called “magic roundabout” – a process whereby a taxi takes interns home, waits outside while they shower and change, then drives them back to the office to begin another long day.
FinanceInterns, a careers advice group, condemned the City’s long-hours culture. A spokesperson said: “Young people who jubilantly accept a summer internship thinking they’ve landed a chance at their dream job, find themselves declaring that, what should have been a summer full of hope, is in fact the ‘worst three months’ of their lives due to the exhausting combination of all-nighters, weekend work and the magic roundabout.
“In the toughest job-market experienced in recent times, competition is even higher. Consequently these talented, diligent, young people are ever more willing to work hours which more senior staff would not.”

martes, 20 de agosto de 2013

Current Affairs: Obituary - Rosalía Mera



OBITUARY

Determined, with a hippy air and forever young at heart: Rosalía Mera


Zara founder, social campaigner and 66th-richest woman in the world dies



El País

Rosalía Mera, Spain’s wealthiest woman and cofounder of the retail clothing giant Inditex, died Thursday night at age 69. Despite her great fortune — she was the world’s 66th-richest woman, according to Forbes — the entrepreneur and mother of two from A Coruña will be remembered for her charity work and as a social campaigner.


She was rushed to hospital while on holiday in Menorca last Wednesday after suffering a stroke followed by a cardiac arrest. She was taken to a private hospital in her home town, where she passed away just after 8pm on Thursday.


“I saw her for the last time on an airplane last month and she was the same as always,” said a friend. “Determined, with her hippy air and not seeming the age that she was.”


Born in 1944 in Monte Alto, a working-class neighborhood in A Coruña which surrounds the Tower of Hércules lighthouse, hers were humble origins. Her father worked for Fenosa and her mother ran a butcher’s shop. Mera would tell how her grandfather “worked taking salted pork to Cuba. He used to go and not even tell his wife. He would tell my mother to tell her.”


Despite the efforts of her grandfather and her hardworking parents, Rosalía Mera had to leave school at 11 and began working in a famous shop in A Coruña, called La Maja, first as a seamstress, then as a shop assistant. It was there that the attractive, determined young shop assistant met Amancio Ortega, who was working at another well-known A Coruña clothing store, Gala. Together, they decided to begin a new life, both personal and professional.


After a few initial hiccups, Rosalía Mera, her husband and their family began their first successful venture, Goa Clothing (then Zara), making house coats.


Zara went from its first store in 1975, to an ever-growing number of outlets all over the world today. This is where the company cofounder made her reported 4.7 billion euros. But in 1986 she split from Amancio Ortega and from everything involved with her job at Inditex, although she would not leave the board of directors until 2004. She studied teaching and concentrated on her two children: Marcos, who was born with profound cerebral palsy, and Sandra, who was later her closest confidante.


She started the Paideia Galiza Foundation, a center of social and educational studies. The organization has been active in helping disabled children, but in many other wide-ranging activities besides. When a lottery jackpot sowed millionaires all over Rianzo (A Coruña province), a team from Paideia went there to ensure that the money did not all end up being spent on things like luxury cars, and instead went to more productive uses.


Her own fortune, which grew when Inditex was floated on the stock market, was invested in the hotel sector, renewable energy, information technology and more. She was also involved in housing investment societies and had funds managed by the fraudster Bernard Madoff. She possessed a five-percent share in Zeltia pharmaceuticals, which she supported when their anticancer experiments came into question.


In 2004 she founded the Mans Center, an entrepreneurial initiative center, focused on cultural and technological sectors. The center provided everything from offices to a studio big enough to record a symphony orchestra. She was not without her detractors. Some said that Rosalía Mera’s influence drew unnecessary help and grants to her projects. Deloa, a tourist association made up of two dozen companies, sponsored by Paideia, managed investments of 17 million euros in 10 years. “Our associations and our businesses all have the right to opt for public help,” Mera said.


Three of the four multimillionaires that top the Forbes list of Spain live in A Coruña: Ortega, Manuel Jove and Rosalía Mera. The three were easily found in places such as the Riazor soccer stadium or the Os Belés bar. But Mera stopped attending this temple of tavern singing because, reportedly, there were people who would go there in order to ask her for favors. The daughter of Monte Alto who became the teenage seamstress for the ladies of A Coruña professed the old left-wing belief in redemption through work.


She went to all of Paideia’s press conferences and would answer any question. There she would throw out verbal bombs that she did not appear capable of. “Such widespread corruption happens in many ways, and comes in many colors. We have to stand here and say ‘No!’” she said in June 2011. She was a supporter of 15M — a precursor to the Occupy protest movement — and went to join their camps. And she was critical of government cutbacks. “The cuts in the fields of health and education are a bad deal for society. What you cannot do is go to the easiest part and cut from the bottom. We are on a boat on which we must save ourselves together, and we cannot be throwing people overboard,” she said last May, at the same time as expressing her opposition to reform of the abortion law.


“I am without a class,” she told Suso de Toro from EL PAÍS in 2004. “However, if I have to identify myself, I identify much more with this environment that has been my world, which I haven't wanted to leave too much because it nourishes and sustains me.”


Her fortune passes to her daughter, Sandra.