MADRID, Jan. 17 (UPI) -- (This is the second part of a two part review of the economics of the Gibraltar, whose future is due to be discussed between the British and Spanish governments at the highest level this spring. In the first part, published Wednesday, we reviewed the island's history and economy, and examined its place and reputation in the shadowy world of money laundering. In this second part, we look at how the European Union regards Gibraltar's position, and the part already played by the island in Spanish business, which is to a large extent dependent on it as an offshore tax haven.)

There is no hard data on how much Spanish money is being laundered in Gibraltar, but the arrival of the euro has make clear that Spanish citizens are fond of secret places for their cash.

In spite of Spain's increasing unemployment and decreasing growth, the experts have noticed a rise in spending -- especially in luxury cars, jewelry and real estate -- at the end of 2001. It's a trend that could only be explained by the amount of "dirty money" in circulation before the arrival of the euro.

Luxury car sales increased 13 percent last October, the second best recorded October. Car-makers foresee sales of 1.4 million cars in 2001, a historic record. Briefcases full of soon to be obsolete pesetas were used to buy cars.

Banks also have been flooded by calls from people that want to exchange pesetas into euros without being questioned (Spaniards can exchange up to 2.5 million pesetas -- $13,270 -- without identifying themselves, but only until March).