Of the many bits of bad economic news Spain has received this past year, including finding deficits were higher than expected and growth rates much lower, perhaps no other figure has proven as weighty and daunting as the country’s unemployment rate. Reports released at the end of January saw that number rise to 22.9 percent, adding another dismal headline to the Rajoy government’s first full month in office: nearly 5.3 million people out of work with declines in available positions across the board, from services to the country’s still collapsing construction sector. Capturing the dour outlook of the country’s current situation, The Atlantic’s Derek Thompson summarized the statistics … [Read more...] about Getting to the bottom of Spain’s daunting unemployment rate
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Even Spanish TV feels the pain
As part of swingeing spending cuts being implemented at the behest of the European Central Bank, the Spanish government is to slash state broadcaster RTVE’s budget this year by €200 million to €1.2 billion. RTVE’s board says the cuts will have a “devastating impact” on its programming, predicting that its audience figures for its two channels La 1 and La 2, will drop by 8 percent. La 1 frequently tops audience ratings thanks to hugely popular programs such as Cuéntame como pasó — a long-running drama telling the story of a family from the Franco era up to the present day— or fantasy saga Águila roja, and post-Civil War soap opera Amar en tiempos revueltos. But the channel says that the … [Read more...] about Even Spanish TV feels the pain
Spain’s tax hike threatens La Liga’s appeal
One of the first moves by Spain’s new Mariano Rajoy-lead Partido Popular government has been to increase the maximum personal income tax (IRPF) rate by seven percentage points to 52 percent for annual salaries over €300,000. Given the shocking state of the Spanish government finances this should not really have been a difficult decision to take, especially considering the small percentage of Spanish tax-payers affected. For most Spanish citizens the most visible losers (of this particular increase) will be the football teams they follow. Spain’s politicians have traditionally been keen to be seen to support football, and a past PP tax ‘incentive’ aimed at attracting higher earners from … [Read more...] about Spain’s tax hike threatens La Liga’s appeal
Spanish energy sector seeks clarity under Rajoy
Facing pressing issues of funding and stability, Spain’s energy sector has looked for some clarity about what the industry will look like under a Mariano Rajoy-led government, but it has found little. Like his plans for most areas, Rajoy has remained vague about what he has in store for the country’s energy actors, pledging to unveil details and appointments only after he takes office on December 21. Still, despite the prime minister-elect’s silence on the issue during the election campaign, a long political path and party positions reveal some hints about how the new conservative government will tackle both traditional and alternative energy issues. Eager to hear the new government’s … [Read more...] about Spanish energy sector seeks clarity under Rajoy
Modern Spain’s legacy: airports, deficits and brutal cuts
Last week, Spanish newspapers reported that a recently busted gang of drug smugglers had planned to buy part of Ciudad Real airport in order to ship cocaine into the country. It was hardly the kind of news that the Castilla-La Mancha authorities would normally have enjoyed hearing, but right now, almost any potential buyer of this huge building with a four-kilometre airstrip will be welcomed with open arms. The Aeropuerto Central Ciudad Real, as it is known, is now as representative of Spain –particularly 21st century Spain– as the windmills and plains that surround it. Built in 2008, it was, for a time, presented by the local government as a bold way of putting the land of Don … [Read more...] about Modern Spain’s legacy: airports, deficits and brutal cuts
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
A social network headed for global dominance… or buy-out syndrome?
It receives 15 percent of all Spanish internet traffic, has 11.5 million users and its own mobile phone operator and for the last year has been under the ownership of a telecoms giant. Tuenti is the social network of choice for Spain’s teenagers and a major corporate presence that many believe is on the verge of expanding abroad and taking on Facebook in the world market. Tuenti’s figures do indeed make for impressive reading and this, no doubt, was what appealed to Telefonica when the company made its €70-million bid for the social networking site in 2010. Now, a year after the takeover, Tuenti is at a key phase in its development. And as it moves forward in the shadow of one of Europe’s … [Read more...] about A social network headed for global dominance… or buy-out syndrome?
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
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