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
spain austerity
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 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
Rajoy’s smoke and mirrors have worked – for now, at least
If we have learnt anything about Spain’s new prime minister, Mariano Rajoy, since he took power in December, it’s that his reputation for being anything but straightforward when conveying his intentions is well deserved. Rajoy has often been portrayed as the embodiment of retranca, a tendency his fellow Galicians are known for to answer questions with ambiguity and multiple meanings. The first two months of his tenure have seen Rajoy behave every bit like the stereotypical Galician. An early example of this was when the prime minister deployed his front-line ministers to announce a major tax increase, just days after himself announcing that “my intention is not to raise taxes.” And now … [Read more...] about Rajoy’s smoke and mirrors have worked – for now, at least
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
Who’s in charge in Spain?
Question: Who is the leader of the PSOE? Answer: Now, I am. The leader of the PSOE, the leader of a party, is whomever it presents as a candidate at general elections. Question: I’d say that the leader of a party is whoever is in charge. Who’s in charge of the PSOE? Answer: In the Socialist Party, I’m in charge. Question: If you are the leader of the party that supports Zapatero in Parliament, one would suppose that he would consult you on major issues. Answer: One would suppose that. The above is a translated excerpt from the interview published on Sunday that El País editor Javier Moreno carried out with Alfredo Pérez Rubalcaba, the Socialist (PSOE) candidate in the … [Read more...] about Who’s in charge in Spain?
Spain’s general strike: too much, too late
The statisticians may argue for some time to come about the success or otherwise of Spain’s general strike. To nobody’s surprise, the UGT and CCOO unions, which organised the country’s first nationwide strike in eight years, described the protest as an overwhelming success, while the government said participation was “uneven”. Judging by Prime Minister José Luis Rodríguez Zapatero’s insouciant demeanour as he entered Congress on the morning of the strike, his government had little to worry about. And yet, the mass closure of businesses for the day, the crippling of the country’s bus services and thousands (or 70 percent, according to the organisers) of workers marching through Spain’s … [Read more...] about Spain’s general strike: too much, too late
The strikers who have nothing to protest
There have been a number of signs over the last few months that the general strike called by Spain's two main trade union confederations, UGT and Comisiones Obreras (CCOO), against government economic policy and labour reform is not going to attract as big a crowd as anticipated. The first was that they switched the date of the strike from June to September 29th. The second was when, in late spring, the functionary-specific unions that had invited the leaders of UGT and CCOO, Cándido Méndez and Ignacio Fernández Toxo respectively, to a protest against government pay cuts later declared that neither would be welcome at future demonstrations. UGT and CCOO, it was felt, had attempted to hijack … [Read more...] about The strikers who have nothing to protest
The market tears up Zapatero’s social contract
“My government’s ambition is to make this an innovative, creative, entrepreneurial country while upholding the social welfare state… I think we should learn the lesson of the Great Depression: when an economy enters a deep recession, the only way we can come out of it is from a big push from the public sector.” José Luis Rodríguez Zapatero uttered these words less than a year ago. At the time, with Spain mired in recession, critics could argue with his ideological stance, but nobody could doubt his convictions. However, the prime minister’s announcement on May 12 of a broad and radical raft of austerity measures has seen him perform the biggest U-turn of his six years in government … [Read more...] about The market tears up Zapatero’s social contract