European Stars And Stripes (Newspaper) - February 4, 1989, Darmstadt, Hesse Iberian Sunbelt Europe s last Frontier by Steven greenhouse new York times Ith Europe s fastest economic growth rate and foreign investment that has tripled in five years Spain is turning into the continent s Sun Belt. The iberian Peninsula is Europe s last Frontier said Jorge Hay director of planning for Banco hispano americano in Madrid. Spaniards and other europeans alike used to say Europe stops at the and indeed during the 36-year reign of Francisco Franco who died in 1975, foreigners often shunned Spain because of its repressive Ness and backwardness. But foreigners have embraced Spain in the 1980s As it became a stable democracy and a member of the european Community. In addition the socialist prime minister Felipe Gonzalez has adopted Market oriented policies to create the environment for an economic Boom. His government has removed a prior approval process for foreign investments lifted Exchange controls on foreign businesses and loosened rules on laying off workers. It has also offered generous incentives to lure foreign companies especially High technology concerns. He has taken a very pragmatic approach said Ignacio Trillo chairman of general electric Espana. Now with the european Community planning to remove Trade barriers by the end of 1992, business has decided that Spain with its Low wages can be an advantageous place to set up shop within the Community. Investors also Are confident that Spain will grow More rapidly than most of Europe because the Spanish have plenty of cars and Vars to buy to catch up to the French and the germans. There Are not Many countries that will grow As fast As Spain said Rainer Klinke manager of the Madrid office of Deutsche Bank. You have to go where the action tourism is booming too. Eight million British tourists by Paul Delaney new York times rime in general and Street crime in Madrid and other big cities in particular has begun to alarm residents and government officials concerned about the country s image. The topic dominates dinner and cocktail party conversation is the subject of press attention and is increasingly becoming a political Issue. A memorandum posted on bulletin boards of the United states embassy in Madrid and Given to american visitors is a Clear warning about crime in Madrid. The warning is a reiteration of one sounded two years ago that american visitors should take Steps to protect themselves in a City where crime is increasing rapidly. Since the original warning things have gotten worse prompting the latest memo. The embassy recommends that americans exercise the same caution about personal Security in Madrid As they would in any Large City the three paragraph statement begins warning that fast food restaurants Are especially dangerous. File photo downtown Madrid there Are not Many countries that will grow As fast As Spain says a German banker. Flocked to Spain last year in search of Sun. What is More tens of thousands of germans have bought retirement Homes in Southern Spain. Like the american Sun Belt Spain has found that sudden growth can bring problems As Well. The surge in activity has snarled such services As roads and telephones. Another problem is that the economic Boom has hardly dented the nation s unemployment rate which remains close to 20 percent. But that has not stopped american japanese and Northern european companies from Rushing to build factories in Spain. Foreign direct investment in plants and equipment soared to $4 billion last year from $1 billion in 1983. We feel Spain has a lot of potential said George Foyo managing director in Spain for the american Telephone & Telegraph co. At to just opened a $220 million semiconductor factory on a Hilly 400-acre site North of Madrid. It will be the first semiconductor factory in the nation and Spanish officials lobbied hard to get it. Investment by foreign companies with High tech expertise is very important for our development said Apolonio Ruiz Ligero Spain s Deputy minister of Commerce. General electric has announced plans to build a $1.7 billion plastics Plant in Southeast Spain while the Ford motor co. Is constructing a $68 million Plant in the Southwest to make electronic components for cars. Nissan motor Sony and Matsushita electric Industrial have opened factories near Barcelona and Volkswagen has bought a majority share in what had been Spain s state owned automobile company. Investment has taken other forms As Well. A 50-Story condominium Tower that will be one of Europe s tallest buildings is under construction in Ben dorm a Seaside resort on Spain s East coast. Japanese developers Are building retirement communities along the coast while dutch investors have built hundreds of greenhouses in the torrid South to grow tomatoes and cucumbers to sell in Northern Europe. Thanks to developments like these Spain s Economy grew by More than 5 percent and capital investment soared by 15 percent Over each of the last two years numbers far stronger than those of most other european nations. The problem was highlighted once again in january when two prominent figures became victims. Alfonso Perez Sanchez director of the Prado museum was assaulted by robbers As he parked his car outside his Home. He received minor Stab wounds in the head and Chest. Finance minister Carlos Sorchaga s country Home was burglarized with thieves getting away with $3,500 Worth of appliances. At a Small dinner party recently a Young stockbroker her wrist in a Bandage from a mugging earlier in the Day was the focus of attention. Two other guests had been mugged recently and each of the 10 diners told of friends and acquaintances who were crime victims. It was a scene common in new York and other american cities but until recently rare in Spain. There Are Many reasons for this change. Population in the cities is skyrocketing As unemployed poor people pour in after being replaced on farms and in Small towns by mechanization. The conflicts produced by a booming Economy coupled with the highest unemployment rate in the european Community 19.5 percent highlight the expanding Gap Between Rich and poor. Also Spain is getting ready for several major events in 1992 that will attract millions of foreign visitors. These include the olympic games in Barcelona and the 500th anniversary of Columbus epic voyage and discovery of America. The country normally plays Host to great numbers of tourists Over 53 million last year. There is much More crime and people Are becoming concerned about it said Ramon Hermosilla saturday february 4, 1989 a lawyer and the Host at the dinner. They Are upset with the government for not doing More such As reforming criminal Law and the there were about 15,000 Street robberies in Madrid in 1987,32 percent More than 1986, the City government reported. Statistics for 1988 Are not in yet but some Law enforcement officials expect another huge jump. In its annual report the state attorney general said crime Rose 8.3 percent in the country in 1987. The report said robberies and violent crimes registered the greatest Overall increase 25.9 percent Over 1986, and accounted for 70 percent of All crimes committed. The two largest cities Madrid with 3 million people and Barcelona 1.6 million accounted for nearly a third of All crime. The embassy s warning said americans were not necessarily special targets As thieves presumed All travellers carry a lot of Cash and valuables. But police officials said foreign looking visitors particularly americans and japanese Are targets. Madrid municipal officials met with officers of neighbourhood associations in the City s Ballesta Section recently to map plans to fight crime. The groups rejected City claims that things had improved. The local leaders said they had finally forced the City to Tow abandoned cars used by drug addicts As shelter when members pushed the cars into the Middle of the Street. Fear of crime is rampant. Five years ago mothers could walk their babies any time of Day or night said Lena Flory a translator in a Patent lawyer s office. But not now it s too the stars and stripes Page 13
