German magistrates, who questioned and later approved the rescue of Greece in 2011, have this month started to review the constitutionality of the bond-buying programme of the European Central Bank (ECB) at the request of over 35,000 citizens. They allege that it is an instrument to provide struggling countries with easy money from German pockets. According to many experts, this policy helped Spain and Italy avert disastrous defaults by preventing bonds’ interest rates from escalating to unaffordable levels, which was what was happening until the ECB president Mario Draghi threatened to do “whatever it takes” to protect the euro in July and subsequently launched the bond-buying programme … [Read more...] about How EU austerity is falling foul of the law
austerity
Iberian of the Year 2012: Artur Mas
For most of 2012, Catalonia was just one of many political concerns in the wing mirror of the Spanish government. The region’s premier, Artur Mas i Gavarró, had been pressing for increased economic powers for some time, arguing that Catalonia did not receive enough investment from the Spanish state in exchange for the taxes it paid. For the government in Madrid, this was nothing new or particularly worrying. But on September 11, as Catalonia celebrated its national day, the Diada, hundreds of thousands of people marched through the streets of Barcelona, behind a banner calling for independence for the region. This outpouring of separatist feeling surprised the world – and the rest of … [Read more...] about Iberian of the Year 2012: Artur Mas
Mariano Rajoy
To his supporters he’s calm, considered, strategic and resilient. But to his critics – whose ranks have swelled this year – Spain’s prime minister is hesitant, rigid, poorly advised and uncharismatic. Whatever your view, few will argue that even his previous experience as a government minister and eight years in opposition can have prepared Mariano Rajoy adequately for the torrid 12 months he has just had. Having made few electoral promises other than to fix the economy, his fortunes were always going to mirror those of the country’s credit risk premium and its jobless queue. Both hit dangerously high levels in 2012, belying Rajoy’s apparent belief on taking office that a change of … [Read more...] about Mariano Rajoy
Spain’s Congress protests in pictures
All images: Felipe Fuente … [Read more...] about Spain’s Congress protests in pictures
Schools protest as Valencia fails to pay up
The absence of funding from Valencia has led to some schools being left without electricity and others having no money for basic resources or unable to replace teachers who are absent. Las Culturas is struggling on a week-by-week basis. So how have they been managing? A representative from the school explained: "The only way we are able to keep the school running is through using the money that people contribute towards lunch. Without this we would have nothing. We would not be able to buy paper for the photocopier or even toilet paper.” The cut in resources has had immediate effects, while other cut backs will have longer-term implications. Teacher pay and conditions are being … [Read more...] about Schools protest as Valencia fails to pay up
Rajoy must take reins swiftly to avoid economic chaos
Mariano Rajoy’s resounding election win has redrawn Spain’s political map and put his Popular Party (PP) firmly in control of the country after seven-and-a-half years of Socialist government. He could hardly face a more difficult task on being voted prime minister. In the days leading up to the election, Spain’s economy was being battered by the markets, with its bond prices close to those of beleaguered Italy. Italy hopes it has just overcome its own political upheaval; Spain’s situation is less clear-cut. Spanish law dictates a lengthy hiatus between a prime minister’s election win and his instatement. José Luis Rodríguez Zapatero’s successor as prime minister was not due to be sworn … [Read more...] about Rajoy must take reins swiftly to avoid economic chaos