The news that former Prime Minister José Luis Rodríguez Zapatero is writing a book about his two terms in office in which he will be “critical of himself, but not others,” according to people close to him, stuck out like a sore thumb given that in Spanish politics, apportioning blame currently seems to be as much a priority as finding solutions to the crisis. Whether Zapatero does manage to criticise only himself in his book is another matter, but if not, plenty of others are quite happy to point the finger at him. Last week, Economy Minister Luis de Guindos echoed the Partido Popular-led government’s regular complaint that it inherited an economy in tatters from the Socialists, this … [Read more...] about Bankia and the blame game
economy
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
Spanish wine bucks recession
In times of recession, it is always surprising to find businesses that have survived – indeed thrived – against the odds. The steady closure of smaller stores has left many Spanish town centres struggling to remain vibrant and in such a climate, niche is everything if you are hoping to capture the market. The main street of the Basque capital Vitoria's old quarter throws up one such case: Martin's Bodega is 15 square metres of wall-to-wall wine. English owner Martin Beacham opened the shop in 2009 just as the recession was beginning to hit. At such a delicate time, it was a straightforward matter of sink or swim. Three years later, business is steadily thriving, though most clients are … [Read more...] about Spanish wine bucks recession
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
The Spanish economy’s sustainability dilemma
"Environmental sustainability cannot be understood today without taking into account the economic factor. Only when environmental policy is economically viable can it be sustainable over time. Economic viability and environmental sustainability will be, therefore, the two aims of the policy that this ministry will pursue.” This sentiment, voiced by Environment and Agriculture Minister Miguel Arias Cañete recently, sounds sensible enough. But the full content of his speech, addressed to a congressional committee and outlining his intentions for this legislature, has stirred some deep fears among environmentalists. It has also brought the sustainability-versus-growth debate into the … [Read more...] about The Spanish economy’s sustainability dilemma
Rajoy, reform and the burden of employment expectations
As thousands took to the streets at the weekend, it quickly became clear that the Partido Popular’s approach to job creation had more than a few critics. Focusing their anger on reforms passed on February 9, critics called out the new government’s efforts to reduce mandatory severance pay from 45 to 33 days per year worked and allowing what they felt was an unfair freedom for companies to opt out of collective bargaining agreements and adjust wages and hours according to their financial standing. The Rajoy government insisted that it “wants to give firms the ability to modify workers' hours in response to demand rather than simply laying them off, bringing an end to the rapid rise in … [Read more...] about Rajoy, reform and the burden of employment expectations
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
Read my lips: Why did Rajoy break one of his few campaign promises?
“My intention is not to raise taxes.” It’s a line that Mariano Rajoy’s critics will repeat back at him for years to come. Much like George H. W. Bush’s infamous “Read my lips: no new taxes”, Rajoy’s pledge, made on December 19, during the debate ahead of his investiture as Spain’s new prime minister, has proved to be empty. Unlike Bush, Rajoy has not resisted or dragged his feet in performing a spectacular U-turn on this issue. Eleven days after saying he wouldn’t raise taxes, his deputy prime minister, Soraya Sáenz de Santamaría, announced tax increases that will bring in an extra €6 billion this year. As Spaniards digest the implications of the new Popular Party government’s … [Read more...] about Read my lips: Why did Rajoy break one of his few campaign promises?
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
Scrappy Spanish election debate leaves Rajoy in pole position
The only head-to-head televised debate of the Spanish general election campaign focused heavily on the crisis-ridden economy, and after a tightly fought contest, Mariano Rajoy remains on course for an overwhelming victory on November 20. The conservative Popular Party (PP) candidate went into the debate with a 15-point poll lead and seeking to make Spain’s 21-percent jobless rate the hub of the debate. His opponent Alfredo Pérez Rubalcaba has been a key member of the Socialist government, something Rajoy reminded him of on more than one occasion. “You’re coming up with all these proposals. Why didn’t you do all these things before?” Rajoy asked, highlighting a glaring weakness in … [Read more...] about Scrappy Spanish election debate leaves Rajoy in pole position