Viewed in a certain light - and especially through a myopic leftist lens - the centre-right Popular Party's landslide victory on the anniversary of Franco's death could be seen as an ironic twist of fate, a disquieting rise of the phoenix: The party was, after all, founded by a former minister in Franco’s government and many of its elderly voters were supporters of the regime. Now the PP, led by Mariano Rajoy (who, ironically enough, was born less than 100 kilometres from Franco's birthplace in Galicia in north-western Spain), will have sweeping powers to pass laws and institute reforms. In the run-up to election day, no one wanted to make too obvious the link between the dates - … [Read more...] about Spain turns right, but where’s the far right?
About Andrew Eatwell
Right sweeps to power in Spain, but don’t expect “miracles”
"There will be no miracles, I didn't promise any," PP leader Mariano Rajoy declared pragmatically on Sunday night after his party took almost 45 percent of the vote, winning an absolute majority in Congress in its strongest ever election result. With 186 seats in the 350-seat Congress, Rajoy, who is due to take office in a month, will have a virtually free hand to carry out reforms, although no one knows for sure what steps the new government plans to take to end years of recession and anaemic growth, the euro zone's highest unemployment rate and an escalating debt crisis. Having kept his cards close to his chest throughout the campaign, Rajoy will now be expected to show them - … [Read more...] about Right sweeps to power in Spain, but don’t expect “miracles”
Ahead of election, Spain’s next prime minister leaves everyone guessing
Mariano Rajoy, leader of the opposition Popular Party, is set to put two election defeats behind him on November 20 and become Spain’s next prime minister. But his all-but-guaranteed victory (opinion polls suggest the PP will win around 190 seats in the 350-seat parliament, its largest ever majority) has little to do with him. Instead, it has much more to do with a three-year economic crisis, an intractable unemployment disaster and escalating worries about Spain’s debt and public account deficits – problems, compounded, if not induced in the eyes of many, by the economic mismanagement of the current Socialist administration of Prime Minister José Luis Rodríguez Zapatero. Those issues, … [Read more...] about Ahead of election, Spain’s next prime minister leaves everyone guessing
Thrifty newcomer may be just the ticket in profligate Portugal
Pedro Passos Coelho, Portugal’s prime minister-elect, does not like wasting money. Both in his professional career and personal life, he has been described as thrifty, frugal, even tight-fisted. He currently lives in a standard apartment block in the none-too-fashionable Lisbon district of Amadora, but if he moves into the prime minister’s residence near the São Bento Palace his stinginess may come in handy in solving Portugal’s debt and deficit crisis. That, at least, appears to be what many Portuguese were thinking when they handed victory to Passos Coelho’s centre-right Social Democrats (PSD) in last Sunday’s general election, coupled with a desire to get rid of the Socialist … [Read more...] about Thrifty newcomer may be just the ticket in profligate Portugal
It’s the economy, stupid
The young protestors who have converged on Madrid’s Puerta del Sol square – and, increasingly, on squares in cities across Spain – under the banner of the 15-M Movement have myriad demands. They want political change, a more open participative democracy, corrupt politicians out of office, the repeal of “unjust” laws, a reform of benefits for the political class, tax reform, a referendum on the monarchy, a higher minimum wage, the full separation of Church and state… the list goes on. But although the protestors’ demands are heartfelt and sweep across many socio-political areas, it is ultimately – and understandably – the protestors’ wallets that have driven them to camp out in Madrid and … [Read more...] about It’s the economy, stupid
Spain: Too big to fail?
The European Union’s three victims-so-far of the global financial meltdown have, not incorrectly, been described as the economic bloc’s periphery. Their economies are relatively small and, though at times worries about their debts have undermined the euro currency, their problems – even taken in combination – are hardly likely to bring the bloc to its knees. Individually, they were sick from a debilitating cocktail of similar problems: bed-ridden with debt and weak from a bad diet of profligate government spending and loan-happy banks. Nothing, it seemed, that a dose of bailout money from the EU and IMF could not cure with a trip to the emergency ward. Spain is showing similar symptoms. … [Read more...] about Spain: Too big to fail?
Portugal gets bailout as Sócrates eyes reelection
Since his government collapsed, Sócrates has worked hard as acting prime minister to secure a now-essential bailout package with the European Union and International Monetary Fund to patch up Portugal’s debts and correct budget deficits that have crippled the country’s ability to borrow on international debt markets. This week, he achieved his objective: agreeing to a bailout with austerity measures very similar to those that opposition parties shot down in the parliament in March. “The government has today reached an agreement with the international institutions regarding the financial aid to our country,” Sócrates said in a televised address on Tuesday. “Naturally, there are no … [Read more...] about Portugal gets bailout as Sócrates eyes reelection
Mixed feelings in Spain over Libya mission
Publicly, however, Spaniards are split over the merits of an intervention in an Arab state, which to some observers at least brings back uncomfortable memories of the former Popular Party administration’s backing for the US-led invasion of Iraq in 2003. While the Iraq intervention was widely unpopular – drawing millions of Spaniards onto the country’s streets in protest – the Libya mission has drawn no such outcry. Among Iberosphere readers, 45 percent support Spain’s involvement in the NATO mission, according to an (admittedly unscientific) poll on this website last month. Forty percent oppose Spain being involved, and 15 percent said they were indifferent. Spain is backing the NATO … [Read more...] about Mixed feelings in Spain over Libya mission
With almost five million out of work, Spain’s unemployment crisis rages on
In January 2009, Spain’s then Labour Minister Celestino Corbacho declared confidently that the number of jobless people in Spain would not surpass the four million mark. It took only three months for him to eat his own words as unemployment shot past that psychologically significant level. It has continued to tick upwards ever since. Corbacho lost his job in October last year. Now another minister, Elena Salgado, who holds the economy portfolio and serves as second deputy prime minister, is also putting her credibility on the line. In a press conference on Thursday, she said five-million plus job seekers is not on the cards. “In the opinion of the Economy Ministry that figure will not … [Read more...] about With almost five million out of work, Spain’s unemployment crisis rages on
Spanish home prices fall faster on tax changes
The income tax filing season for the 2010 tax year, which began on April 4 and ends June 30, will be the last in which the vast majority of Spanish homeowners will be able to write off on their tax returns 15 percent of the interest and capital they pay on their mortgages up to a cap of €9,000. As of this year, only homeowners earning less than €17,000 per year will be able to benefit from the full extent of the tax break, while those earning up to €24,000 will find that the amount they can deduct has been progressively capped at much lower levels than before. Higher income earners will be able to deduct nothing. More than a third of tax payers will no longer benefit from the tax … [Read more...] about Spanish home prices fall faster on tax changes