How Pinoys in Europe are affected by weakening euro

By Daniel Infante Tuaño

SPAIN – Filipinos in Europe are already complaining of the continuous depreciation of euro.

They can’t help but compare the euro-peso exchange rate 10 years ago, when a euro was pegged at P70. But in March, the euro plummeted to almost P46, making it almost equivalent to one US dollar.

Some Filipinos have to send more euros so their families in the Philippines can receive the same amount they have been receiving every month.

Barcelona resident Bryan Avila sends monthly remittance to his parents in the Philippines.

Avila, married and has two kids, needs to further tighten his belt as he also allots a budget for his family in Barcelona.

“Kontrol ngayon dahil mababa ang rate, sa mga bilihin dito, sa mga gamit ng bata, mga pagkain, mga pambayad ng bahay. Budget na budget talaga,” Avila added.

Other Filipinos resort to reducing their remittance or doing extra jobs like Leonilyn Jabon Noche.

“Hindi na talaga kaya yung gastusin dito, yung bahay natin dito na tinitirahan, hindi katulad sa ibang bansa na Saudi, Hong Kong mas libre yung pagkain, libre yung tinirahan, so parang pareho na rin lang kung iko-compare mo sa ibang bansa,” Noche said.

Roger Rafanan is fully aware of his fellow Filipinos’ plight every time he talks to them in his remittance agency.

Rafanan said usually Filipinos send 50 percent of their salary. But due to the depreciation of the euro, some of them are forced to send more than that even though they are not earning more.

“Dahil instead na budget nila dati, dadagdagan pa nila…Hindi naman tumataas yung sahod,” Rafanan said.

Carrer de Joaquin Costa in Barcelona, Spain

According to economist and financial expert Dr. Ricardo Barcelona of Barcino Capitas Limited, the European Central Bank has implemented a policy that intentionally weakens the euro called quantitative easing, which means the Bank buys more US dollars to depreciate the value of euro against the US dollar.

If the euro becomes weak, exports from Europe will become cheaper, sales will increase, and this will eventually bring economic growth to Europe.

“Dito naman sa Pilipinas, ang policy naman ng Central Bank natin, ang tinitingnan nilang exchange rate is Peso-US dollar. Magpadala ka ng euro, ang ginagawa ng mga bangko papalitan yung euro mo to US dollar, ang US dollar mo ipapalit ng peso. Kapag exchange mo ng euro (equivalent to) 1.05 (dollars) na lang, konti yung dollar na makuha mo, ‘pag palit sa peso konti ang makuha mo,” Barcelona explained.

Filipinos in Europe, he added, should pay more attention at the prevailing euro-US dollar exchange rates.

Nonetheless, Barcelona has a positive forecast for Europe.

In 2015, the value of euro and US dollar will be equal, but in 2016, euro will become stronger again against the dollar and European economy will grow especially the Spanish economy.

Barcelona, on the other hand, reminded that Filipino families should not be dependent on exchange rates but rather learn how to manage the remittances.

He also stressed the positive aspect of “malasakit”, however, in the long run it could be detrimental as some families take advantage of this and can become overly dependent on the remittance.

“Yung isa may malasakit sa familia so positive yun. Ang negative side nyan, aasa na lang tayo. Aasa kay ate. Aasa kay kuya. Yung pangalawa, yung mga remittance natin sa isang period yun na pwede tayong magtrabaho, malakas, healthy pa tayo so gawin natin yang opportunity na mag-ipon. Finally, self-reliance talaga ang importante. The beginning and the end of everything is the initiative from the individual,” Barcelona advised. ABS-CBN

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Pinoys in crisis-hit Spain hope for better 2015

By Daniel Infante Tuaño

BARCELONA – Filipinos in Spain still hope that the economic situation in the country will turn around in 2015.

The southern European country has been in crisis for more than seven years with 25 percent unemployment rate, forcing Spaniards to look for greener pastures abroad.

Businesses closed due to Spain’s sluggish economy

Teresita Pascual, who migrated to Spain and has been selling roast chickens and prepared food for more than 20 years in Barcelona, had to lay off two of her employees due to decreasing sales.

Pascual is positive though that the economy will pick up and business will be rosier this year.

“Nag-hohope ako na talagang magbabago pa rin kasi lahat naman yan eh daraan at daraan. Ang hanapbuhay ko naman ay pagkain so alam kong ang mga tao magugutom so karaniwan bibili at bibili,” she said.

Pascual’s Pollo Al’Ast (Roast Chicken) business thrives despite crisis.

Estela Estrada’s grocery business, meanwhile, had to close down, so she decided to seek employment anew as a cook.

Estrada shared the sentiments of many EU-based Filipinos on weakening value of euro against Philippine peso. Ten years ago, a euro was pegged to almost P70 but now it’s only equivalent to P54.

The salary in Spain, she added, is becoming more and more like in the Philippines.

“Hindi pa dumarating ang sweldo, naiutang mo na. Ang sweldo mo dadaan lang sa kamay mo para pambayad sa mga bills lalo na pag may mga pinag-aaral ka pa. Nag-rerent ka ng bahay… Tumataas lahat ng bilihin, mas mababang sweldo, mahirap pa ang trabaho, mahirap pang humanap ng trabahong permanent,” she said.

Estrada is less optimistic—the situation is not expected to change so more and more Filipinos are migrating to London, Switzerland and some would even go back to the Philippines.

There are 4,512,116 unemployed according to Spain’s Ministry of Employment as of November 2014.

Rossel Addatu, who owns an employment agency, said that there is an increasing demand for workers.

“Medyo umaahon na ring konti, tsaka marami na ring humihingi na naman ng (domestic helpers) Bumaba ng konti ang sweldo pero bumabalik…maraming trabaho din ngayon,” she said.

Aside from domestic work, Filipinos in Barcelona also work in hotel and restaurants.

Filipinos in Barcelona working in a Mediterranean restaurant.

Philippine Honorary Consul to Barcelona Jordi Puig, who happens to be one of the owners of a chain of restaurants and hotels that hires Filipinos, is also optimistic.

“We close this year in the business, better, it’s going up, it’s more work, the benefits of the enterprise…This made to think 2015 will be the end of recession, especially here in the area of Catalunya but much more in Barcelona,” Puig said.

Puig’s prediction is similar to what Spain’s Prime Minister Mariano Rajoy year-end report had stated.

“2014 has been the year of recovery, 2015 will be the definite takeoff of the economy,” declared Rajoy in Spanish. ABS-CBNnews.com

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