Given Rodrigo Rato’s previous form and his current predicament, the news that Telefónica has appointed him to the advisory boards of its European and Latin American businesses raises new concerns about transparency and corporate governance in Spain. Rato - who has also served as head of the International Monetary Fund and as Spain's economy minister - will help "reinforce the global vision of Telefónica", the country's largest telecommunications company said after announcing the appointment on January 4. Readers will remember that it was Rato who oversaw the privatisation of Telefónica back in 1997. Rato’s hiring by Telefónica comes less than a month after he was summoned before a … [Read more...] about Rodrigo Rato: exiting through the revolving door
Spain News
Mario Draghi: the closest thing the Eurozone has to a leader?
Mario Draghi: the closest thing the Eurozone has to a leader? Who leads the Eurozone? Having “saved” the euro last year, I think that title belongs to Mario Draghi, head of the ECB. This article looks at why that is, and why it’s less than ideal. One of the things for which Henry Kissinger is famous for asking is, “Who do I call, if I want to talk to Europe?” Well, the European Commission may have a President, in the form of José Manuel Barroso, but I doubt that anyone thinks he’s where the power in Europe lies. He’s closer to a glorified bureaucrat. Meanwhile, others might say that Angela Merkel is where power truly lives on the continent. Germany is after all Europe’s biggest … [Read more...] about Mario Draghi: the closest thing the Eurozone has to a leader?
Life and trials of the rebel colonel
Seventy-four-year-old Colonel Amadeo Martínez Inglés certainly looks every bit the retired military officer as he marches in his uniform towards the little crowd outside the court. But he doesn’t sound like a typical army colonel. “The Third Republic will soon be born in Spain!” he declaims to the applause of his gathered supporters before entering the Audiencia Nacional, the high court that deals with terrorists, international gangsters and drugs traffickers, to face a 15-month prison sentence for his insults against the king. It’s April 2012 and he is accused of “Calumnies and Injuries Against the Crown” under Penal Code Article 490.3, a law which has already been quashed by the … [Read more...] about Life and trials of the rebel colonel
La Liga: Messi’s Ballon d’Or highlights gulf dividing Barça and Real
As liga action resumed after a short break for Christmas, it seemed not much had changed in Spanish football. Barcelona continued their winning run and got their manager Tito Vilanova back following surgery after his cancer was found to have returned, José Mourinho was still stirring the pot at Real Madrid by continuing to leave Iker Casillas on the bench, Fernando Llorente still wants out of Athletic Bilbao and Lionel Messi once again stood in Cristiano Ronaldo’s way to take the FIFA Ballon d’Or. The Argentine was awarded the prize for the fourth consecutive time in Zurich on Monday night, beating teammate Andrés Iniesta and the Portuguese forward to the prestigious honour in a year when … [Read more...] about La Liga: Messi’s Ballon d’Or highlights gulf dividing Barça and Real
2013: Another rough ride for Spain
Last year presented probably the toughest baptism of fire for any Spanish prime minister since the transition to democracy, but Mariano Rajoy knows that this year will be just as challenging. The big problems facing his government in the coming months are, for the most part, those that dominated 2012: the markets and a pending bailout; rising unemployment; lack of growth; social unrest; and Catalonia’s push for independence. The bailout presents perhaps the most vexing problem for Rajoy, because it demands decisiveness from a notoriously equivocal politician. Although Spain’s borrowing costs have dropped from their alarming levels last summer following Mario Draghi’s assurances … [Read more...] about 2013: Another rough ride for Spain
La Liga: The end is nigh for José Mourinho
This season, there have been very few quiet weekends in the Spanish capital and on Saturday evening, one decision by José Mourinho opened the floodgates. At around 7pm, with just over an hour to go to kick-off, the press began circulating the news. Club president Florentino Pérez was caught on camera, peering at the phone of a Canal+ presenter to read the extraordinary line-up and appearing bewildered. When the starting eleven was confirmed a few minutes later, it was clear why. Club captain and World Cup winning goalkeeper Iker Casillas was dropped to the bench and replaced in goal by Antonio Adán. The man dubbed ‘San Iker’ for the miracles he performs in front of goal for Los … [Read more...] about La Liga: The end is nigh for José Mourinho
What does 2013 hold in store for the euro?
For my part, I’d say the leaders of the Eurozone have pretty good reason to feel okay about how 2012 has gone. After all, they overcame the biggest challenge facing the currency union, that of doubts about its continued survival, while making big progress on a banking union, and keeping all its members on-board. I don’t think we should under-estimate just what an accomplishment this is. Back in July, when all you could read about were the inevitable Greek exit, Spanish bankruptcy, or wholesale Eurozone collapse, I moved quite a bit of my savings out of my Spanish account (I’m based in Madrid) to the UK, I was that concerned. For us to look at where we stand now and say, well, Greece … [Read more...] about What does 2013 hold in store for the euro?
La Liga: Fallen hero Llorente eyes Bilbao exit
When Athletic Bilbao took to the pitch at the Iberostar Stadium at the weekend, Fernando Llorente was on the bench. It is a place the once-talismanic striker has become accustomed to, as he has been occupying that spot pretty much all season. He wasn’t needed as Aritz Aduriz's 11th-minute header condemned Real Mallorca to defeat – for the ninth time in 11 league games. The visitors went ahead early on at the Iberostar Stadium with their first serious attack as Andoni Iraola – who has returned after missing several weeks through injury – launched a high ball up to the far post, where Aduriz rose to head into the far corner of the goal. However, the visitors had goalkeeper Gorka … [Read more...] about La Liga: Fallen hero Llorente eyes Bilbao exit
Euro climbs as Eurozone banking supervisor agreed
Welcome to the Pure FX account of the latest changes in the euro exchange rate, covering the 7th to 14th December 2012. This is intended as a brief guide to movements in the euro this week, to put you in the best position for when you exchange currencies. Down, but not for long? The euro gained against the pound and US dollar this week, reversing all of last week’s losses, as Eurozone leaders agreed a single banking supervisor for the currency zone. This takes the Eurozone a step closer to genuine fiscal union, and has been widely cheered by the financial markets. To be sure though, it hardly means the Eurozone is out of the debt crisis woods, and the agreement masks big … [Read more...] about Euro climbs as Eurozone banking supervisor agreed
Rajoy’s difficult year
A year after he took office on December 21, 2011, many Spaniards would be forgiven for asking: who is Mariano Rajoy? His first 12 months in power have been so full of contradictions that a clear image of the Spanish prime minister is yet to emerge. His conservative Partido Popular (PP) has one of the biggest congressional majorities Spain has seen. And with it, his government has embarked on one of the boldest reform programs of the democratic era, with opponents frequently accusing it of authoritarianism. Yet still Rajoy is seen as hesitant and equivocal, a politician being led by events and EU orders, rather than leading his people. “Mariano Rajoy governs without his own voice, … [Read more...] about Rajoy’s difficult year