Europe's largest illegal settlement lies on the edge of Madrid. As the Spanish capital has grown, the city's limits have moved ever closer to the shantytown known as Cañada Real, a sprawling tangle of tents and cement houses. And as the economy has tanked, a growing number of people are calling it home.
Now the city is eyeing the property for possible development.
The roads in Cañada Real are unpaved. Houses are made of corrugated metal or cement. Some lots are just piles of garbage.
Originally published on Fri April 27, 2012 4:40 am
There was more bad news for Europe's attempt to rebuild its economy: Standard & Poor announced Thursday that it was downgrading Spain's long-term sovereign credit rating by two notches – from "A" to "BBB+." The agency also lowered Spain's short-term sovereign credit rating to "A-2" from "A-1," and said the outlook on the long-term rating is negative.
It's sounds like a story from the past: A Latin American leader announces plans to nationalize a large foreign company, touching off a high-stakes battle that involves money, politics and diplomacy.
Yet it's happening right now. Argentina's President Cristina Fernandez said this week that her country plans to take over a giant Spanish oil company at a time when the economies in both countries are facing challenges.
Spanish officials are threatening to retaliate against Argentina for seizing a majority of shares in the biggest oil company in Argentina, YPF.