In pictures: Two Spanish crises in one - anti-austerity protests and separatist strife

As protestors surround Madrid, Catalonia ponders independence.

Austerity in Spain has led to political strife which shows no sign of slowing down.

In Madrid, protests on Tuesday night turned violent, as police fired rubber bullets at demonstrators and charged crowds. 32 people, including some police officers, were injured by the clashes, and many were arrested.

The protest had been planning to physically surround the parliament, but when it overran its 9:30pm deadline, police moved in. The demonstrators are demanding the resignation of the government and the king – who has historically stayed less clear of Spanish politics than our monarchy has of British – and want the constitution to be rewritten.

The actions of the police came under fire, with protesters complaining that police officers hid their badges, as well as using excessive force. But the protesters weren't exactly non-violent themselves, as this widely shared video of a police-officer getting a rather savage beating shows (from 1:10):

The anti-austerity protests are unlikely to go away any time soon. Rajoy shortly has to present his budget to the legislature, and while the protesters have a strong idea of what they want to see, the international community demands a different sort of "credibility" – and Rajoy can't please both at once.

Mariano Rajoy

At the same time, a second crisis is erupting in Catalonia, the independently-minded region in the North-East of Spain. The regional government has announced snap elections on 25 November, two weeks earlier than expected, and is also planning on holding a referendum on independence.

Catalonia's regional president Artur Mas

The Telegraph's Ambrose Evans-Pritchard reports on the very concerning comments made by the Spanish army in response to the Catalonian nationalism:

First we have the robust comments of Colonel Francisco Alaman comparing the crisis to 1936 and vowing to crush Catalan nationalists, described as "vultures".

"Independence for Catalonia? Over my dead body. Spain is not Yugoslavia or Belgium. Even if the lion is sleeping, don’t provoke the lion, because he will show the ferocity proven over centuries," he said. . .

Is case you think he is an isolated case, former army chief Lt-Gen Pedro Pitarch said his views reflect "deeply-rooted thinking in large parts of the armed forces".

Gen Pitarch said Catalan independence is out of the question, though he also said Madrid had bungled the crisis of the regions disastrously. "Are we looking at a failed state?" he asked.

Now we have an explicit threat from the Asociación de Militares Españoles (AME), an organisation of retired army officers, warning that anybody promoting the break-up of Spain ("fractura de España") will face treason trials in military courts.

El Pais reports that the anti-independence movement is also being pursued through more conventional political routes. Like scaremongering about the business implications:

"Uncertainty has an adverse effect on money and the business world; and that is what we have at the moment," said one businessman, who, despite his support for independence, admitted the current process has veered off a path of cogency.

Spain shows no sign of settling down any time soon.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.