As the 15-M movement, or indignados, prepare to commemorate their first anniversary, it says plenty about the state of Spain and its economy that much of the news coverage has focused on the possibility of clashes between demonstrators and police this weekend. With gatherings and marches scheduled across the country, from Saturday until the symbolic May 15 date itself, the scene is set for a huge turnout and another expression of anger and outrage at Spain’s political class and their handling of the economy. Many fear that this will spill over into violence, either on the part of the protesters, or the police. Violent confrontation was not something associated with los 15-M when they … [Read more...] about Time for Spain’s ‘indignados’ to prove their relevance
austerity plan
Catalonia’s immigrants face lonely road ahead
Sitting across the table from Xavier Alonso Calderón, Catalonia’s head of Immigration and Labour Relations, it was hard not to feel for everyone within a hundred paces of his office. In one of many sweeping cuts to government spending since coming into office late last year, the Partido Popular-led national government had slashed Spain’s immigration and integration fund to nearly nothing. Established under the Zapatero government in 2005, the fund had set aside up to €200 million to be distributed to Spain’s autonomous communities to help finance programs aimed at reporting, educating and integrating the country’s foreign-born population – a group that had exploded over the past decade, … [Read more...] about Catalonia’s immigrants face lonely road ahead
Five things Mariano Rajoy has learned in his first 100 days
1. Blaming the previous government can only get you so far. The Socialists left the public accounts in mess, let unemployment soar, and failed to acknowledge the crisis in the first place…We’ve been hearing all that for the last two years or so from the Partido Popular (PP). And turning the Spanish economy around in the near future, given the state it was in at the end of 2011, is a tough –some would say impossible- task. So far the governing party’s own support has remained steady, according to polls, even if Rajoy’s has slipped slightly. But at some point very soon, Spaniards are going to stop thinking about Zapatero’s feeble economic legacy and start focusing exclusively on the … [Read more...] about Five things Mariano Rajoy has learned in his first 100 days
Back to the future with Rubalcaba
Unity, strength and change were the basis of Alfredo Pérez Rubalcaba’s rallying cry on winning the Spanish Socialist Party primary by the slimmest of margins on Saturday. But unity currently looks a tall order for the party, given that its 900 or so delegates were divided almost exactly down the middle in choosing Rubalcaba over Carme Chacón. And it can hardly daw on much strength, either, following its record losses in local and general elections in 2011. Rubalcaba himself was the candidate who suffered the general election loss, the Socialists’ worst in the democratic era, and it is now he who has been chosen to pick up the pieces and redefine the party. So change it is. What that … [Read more...] about Back to the future with Rubalcaba
Tax hikes to hit residents
From the most recent Agencia Tributaria bulletins we have been told that 85% of that €6.2 billion tax bill is to come from resident income tax. This affects the employed, self-employed, people with savings and retired people receiving income from outside of Spain such as pensions. It will be administered as a complimentary income tax in addition to the current 24% + income tax that residents already pay. As you might have guessed this tax is on a sliding scale according to how much your income is: Tax range Complimentary income tax €0 – €17.707 0.75% €17.707 – €33.007 2% €33.007 – €53.407 3% €53.407 – €120,000 4% The increases … [Read more...] about Tax hikes to hit residents
How history will judge Zapatero
Jordi Sevilla, a former minister in the government of José Luis Rodríguez Zapatero, recalls how his then boss once told him about a massage he had enjoyed a few days after becoming prime minister. “The masseur was amazed at how little tension he had,” Sevilla said. “This guy had spent a week in La Moncloa (the prime minister’s residence) and that’s enough to leave anyone completely spent!” The anecdote, recounted to writer José García Abad, reflects a couple of popular, not entirely accurate, perceptions about Zapatero: that he is a detached, even cold politician, whose meteoric career has been driven purely by calculation; also that he is a featherweight who doesn’t understand the … [Read more...] about How history will judge Zapatero
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
Rajoy approaches the big job with his head down
As rumours that next year’s general election will be brought forward to the autumn intensify, so does the realisation that by the end of the year, Mariano Rajoy could be prime minister. The strange thing is, judging by his party’s recent behaviour, this doesn’t seem to have dawned on him. If he had fully grasped the reality of his situation, you would think he would tone down the talk of Spain being an economic basket case. But his opposition Popular Party (PP) is determined to hint, suggest, or just plain decry, that the country is in real trouble. Since last year, the PP has been openly wondering whether Spain deserves to be in the same bracket as Greece, Portugal and Ireland. In … [Read more...] about Rajoy approaches the big job with his head down
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