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POLITICS

Pizza delivery falls victim to Spain’s political instability

Spain has been without an elected government for nine months now and the political uncertainty is taking its toll. Even impacting the nation’s hunger for takeaway pizza.

Pizza delivery falls victim to Spain's political instability
Spaniards' appetite for pizza is on the wane. Photo: pixel_d0ts / Pixlr

Spain’s largest delivery pizza firm Telepizza blamed a lack of growth in company accounts on “political uncertainty and loss of consumer confidence”.

Pablo Juantegui, the CEO of the Telepizza group told reporters at a meeting on Wednesday that “the state of political uncertainty has slowed consumption and that can be seen in a decrease in average spending per customer purchase.”

“Until May we had customers who bought more often and in bigger quantities,” he explained.

Telepizza has seen its share price plummet since being first publically listed on Spain's stock market in April, dropping from €7.75 to €4.23.

But despite the losses Telepizza announced expansion plans for Spain with the opening of 200 new stores, according to a report in Spain’s financial newspaper Expansión.

Spain's has suffered political paralysis since December 20th when the election failed to give any party an absolute parliamentary majority, as upstart groupings Ciudadanos and Podemos shook up Spain's long-established two-party system.

A repeat election in June failed to break the deadlock and Spain look set to suffer another general election at Christmas if political parties continue to fail to reach pacts to form a government.

Despite the fact that Spain is being managed by a caretaker government the economy is expected to continue to grow, with a forecast growth of 2.9 percent for 2016.

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ECONOMY

Spain unveils €9 billion plan to tackle Ukraine fallout

The national aid plan will help the country weather the ongoing fallout of the conflict in Ukraine.

Spain unveils €9 billion plan to tackle Ukraine fallout

Spain’s government on Saturday unveiled a €9 billion national aid plan to help the country weather the ongoing fallout of the conflict in Ukraine.

Prime Minister Pedro Sánchez unveiled the package in Madrid which comes on the heels of a €6 billion injection in March for a scheme worth €15 billion overall, or “more than one GDP percentage point”.

The government also extended other measures taken in March and set to end on June 30 by another six months till the end of the year. Those include reducing the price of a litre of petrol by 20 euro cents.

For the second time in less than a year, it also reduced value-added tax on electricity from 10 to 5 percent, a move already announced by Sánchez earlier this week.

It decided to hand out “direct aid of €200” to the self-employed and unemployed, and increase pensions and disability benefits by 15 percent.

The measures aim to help consumers deal with rising inflation, which hit 8.7 percent in May, its highest level in decades.

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