At the end of last year, I spoke to several political analysts about the year ahead, for Iberosphere’s preview of Spain in 2013. One of the questions I asked them was about how safe Mariano Rajoy’s political position was. The experts were fairly unanimous: the prime minister may be under pressure due to the economic crisis, but he has a congressional majority and he’s safe, at least until the next general election, expected in 2015. A few months on, things look slightly different. In January the Bárcenas corruption scandal exploded, the biggest of its kind in recent Spanish history. Its substantial allegations taint the governing Partido Popular (PP), several of its senior figures and … [Read more...] about Rajoy’s problems aren’t what they used to be
rajoy
Resign? You must be kidding
When is it appropriate for a public figure to resign? After displaying gross incompetence? In the wake of evident policy failure? Being caught up in criminal acts? It’s not always clear-cut. Sometimes resignation is an option, but not necessarily the only one. An apology might be just as fitting, or a temporary withdrawal from front-line exposure to the limelight. But in the last few weeks in Spain, there have been several cases that would seem to offer strong candidates for the sack. The most recent is that of Alberto Núñez Feijóo. On Sunday, El País newspaper published photographs showing that the Partido Popular’s premier of Galicia had been a good friend of Marcial Dorado Baúlde, … [Read more...] about Resign? You must be kidding
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
Euro gains as Rajoy’s waiting game pays off
Welcome to the Pure FX account of changes in the euro exchange rate, covering the 12th to 19th of October 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. Latest exchange rate changes Pound to euro: 1.2398 to 1.2276 Pound to US dollar: 1.6036 to 1.6038 Euro to US dollar: 1.2936 to 1.306 Who would have thought it? The euro continued its slow ascent against the pound and US dollar this week, bouncing back ever since its July nadir of 1.20 against the greenback. This is chiefly as Spanish prime minister Mariano Rajoy’s strategy of simply waiting out the markets pays off, and events turn in … [Read more...] about Euro gains as Rajoy’s waiting game pays off
EU praise can’t hide Rajoy’s bailout jitters
Much was made of the apparent chemistry between Mariano Rajoy and Angela Merkel when the two leaders met in Madrid last week. The German Chancellor’s comment that she was “impressed with Spain’s reforms” was indeed music to the ears of the Spanish prime minister. Similar praise from European Monetary Affairs Commissioner Olli Rehn over the weekend, along with IMF managing director Christine Lagarde’s statement that measures taken by Italy and Spain were “adequate in and of themselves” was also welcome from Rajoy’s point of view. The Spanish leader is closely gauging these appraisals of his reform program because, as he almost certainly prepares to request some form of bailout from the … [Read more...] about EU praise can’t hide Rajoy’s bailout jitters
Rajoy prepares for an autumn of discontent
They call it operación retorno: hundreds of thousands of Spaniards get into their cars at the end of their holidays and drive back to their towns and cities to resume their lives. This year, like most, it has seen endless queues of overheated cars fill Spain’s roads on the last weekend of August, peopled by families dreading the return to the office or school. Just eight months into his tenure and with a handsome majority in Congress, Mariano Rajoy should be bounding back to work with a springier step than most. But instead, the prime minister could be forgiven for wishing he were in one of those sweaty, late-summer traffic jams. Rajoy’s honeymoon period finished months ago, if indeed … [Read more...] about Rajoy prepares for an autumn of discontent
Lost
Who knew that a new season of 'Lost' would feature members of the Rajoy Cabinet? I particularly like Luis de Guindos as the enigmatic, sinister John Locke. … [Read more...] about Lost
Euro plunges as Spain cuts deeper
Changes over one week: GBPEUR: 1.254 to 1.267 (+1.037%) - Highest point since October 23, 2008 USDEUR: 0.807 to 0.82 (+1.161) - Highest point since June 18, 2010 Oh, Spain! As you can see above, the euro sits at multi-year lows against both the pound and US dollar this week, giving you a good opportunity if you intend to emigrate to the continent, or snap up some Eurozone goods. Yet the reasons for the euro’s decline could be better. Spanish Prime Minister Mariano Rajoy has announced another €65 billion in spending cuts for the Iberian nation, already widely discredited as the best way to keep Spain in recession. (For instance, Jeremy Warner of telegraph.co.uk notes, “The … [Read more...] about Euro plunges as Spain cuts deeper
Euro up as Spain, Italy take a stand
That, at least, is the takeaway from yesterday’s EU summit, in which Spain and Italy won significant concessions to keep themselves solvent, only by telling Germany they would block “everything” unless immediate steps were taken to help them. Does it sound professional? No. But insofar as Mariano Rajoy and Mario Monti were desperate, it probably doesn’t matter. Moreover, the panicked tactics of the Spanish and Italian premiers have provided the breakthrough the markets were looking for. On Friday, the euro climbed 1.00% against the pound and US dollar and, compared to the brief rally that followed Spain announcing its bailout, this one looks set to last. “At last,” the markets are saying, … [Read more...] about Euro up as Spain, Italy take a stand
Rajoy’s labyrinth
When looking back on the first five months of Spanish Prime Minister Mariano Rajoy’s government, it’s hard to recall many striking images of the man. That’s probably because he is so studiously media-shy, giving as few press conferences as he possibly can, and leaving most major policy announcements to his number two, Soraya Sáenz de Santamaría. But while Rajoy has been typically low-key during his opening spell in office, events have not and a couple of moments from those rollercoaster first months do stick in the mind, telling us apparently contradictory things about the man. One is his comment to his Finnish counterpart, Jyrki Katainen, back in January, that the labour reform he was … [Read more...] about Rajoy’s labyrinth