UNCLAS MADRID 004075

SIPDIS

SENSITIVE

STATE FOR EUR/WE - GCLEMENTS AND MHALL

E.O. 12958: N/A
TAGS: PREL ECON SP
SUBJECT: SPAIN: AMBASSADOR'S MEETING WITH MINISTER OF
HOUSING TRUJILLO


(SBU) The Ambassador paid a courtesy call November 22 on
Minister of Housing Maria Antonia Trujillo. She was
accompanied by Technical Secretary General (Assistant
Secretary) of Housing Javier Garcia Fernandez. In an amiable

SIPDIS
meeting, the Ambassador and Trujillo discussed potential
cooperation on housing and urban planning. The Ambassador
offered the possibility of organizing a trip to the U.S. for
the Minister. Trujillo expressed her desire to do so in order
to share information on statistical reporting methods and on
home financing plans. Trujillo then explained that her
Ministry will be releasing new statistics in an effort to
respond to the accusations that Spain's housing market is
overheated. She clarified that the current annual statistics
of homebuilding take into account planned projects and
rehabilitations, whether or not they ever materialize.
Trujillo rationalized that since this leads to an exaggerated
number of new homes reported, that her Ministry needs to make
an effort to more accurately report the true state of the
Spanish housing market. Trujillo predicts that if Spain's
housing market has a bubble, that it will smooth out over the
next few years rather than bursting. Post will remain in
contact with Fernandez about Trujillo's potential visit to
the U.S. in 2006.
AGUIRRE