It was, of course, a shock to hear about the €22 million that the former treasurer of the governing Partido Popular (PP), Luis Bárcenas, had hidden in a Swiss bank account; and equally shocking have been the allegations that for years the party paid its politicians under-the-table bonuses of up to €10,000 per month. But the depressing thing is, it’s not altogether surprising. This scandal broke in a month when 13 people linked to the PP are awaiting trial for their part in the Gürtel kickbacks case, and with the party’s Madrid premier Ignacio González facing questions over his luxury apartment in Marbella. Just days ago, Juan José Guëmes resigned his post in the company Unilabs España, … [Read more...] about Time for Spain to defy expectations as it battles corruption
spain crisis
Rodrigo Rato: exiting through the revolving door
Given Rodrigo Rato’s previous form and his current predicament, the news that Telefónica has appointed him to the advisory boards of its European and Latin American businesses raises new concerns about transparency and corporate governance in Spain. Rato - who has also served as head of the International Monetary Fund and as Spain's economy minister - will help "reinforce the global vision of Telefónica", the country's largest telecommunications company said after announcing the appointment on January 4. Readers will remember that it was Rato who oversaw the privatisation of Telefónica back in 1997. Rato’s hiring by Telefónica comes less than a month after he was summoned before a … [Read more...] about Rodrigo Rato: exiting through the revolving door
2013: Another rough ride for Spain
Last year presented probably the toughest baptism of fire for any Spanish prime minister since the transition to democracy, but Mariano Rajoy knows that this year will be just as challenging. The big problems facing his government in the coming months are, for the most part, those that dominated 2012: the markets and a pending bailout; rising unemployment; lack of growth; social unrest; and Catalonia’s push for independence. The bailout presents perhaps the most vexing problem for Rajoy, because it demands decisiveness from a notoriously equivocal politician. Although Spain’s borrowing costs have dropped from their alarming levels last summer following Mario Draghi’s assurances … [Read more...] about 2013: Another rough ride for Spain
Businessman’s arrest highlights Spanish corporate failings
The arrest of the former head of Spain’s employers’ association should come as a shock. Sadly, it is more likely to be interpreted by the international community as yet another indication of the many deep-rooted and extensive problems that afflict this country, the most important of which is a lack of transparency in politics and business, along with a failure to implement corporate governance practices. Anybody with a passing interest in the business dealings of Gerardo Díaz Ferrán will not be surprised to learn that on top of all the other charges he faces, he has now been accused of fraudulent conveyance and money laundering relating to the sale of the Viajes Marsans travel group in … [Read more...] about Businessman’s arrest highlights Spanish corporate failings
Choosing the Iberians of 2012
Picking a person of the year is difficult enough in times of economic calm and social stability, but in times of crisis it’s arguably harder. When the economy is struggling and leaders are held in low esteem, it’s hard to find individuals whose achievements make them stand out, for better or worse. So inevitably, the shortlist of Iberians of 2012 that managing editor Andrew Eatwell and I have drawn up has been dominated by the crisis that the peninsula – in particular the Spanish side of it – is suffering. There’s always a risk that calling those nominated the “people of the year” glorifies them, or at least suggests they are being cast in a positive light. But our nominees are not … [Read more...] about Choosing the Iberians of 2012
Juan Manuel Sánchez Gordillo
For some, the answer to the economic crisis is austerity. For others it is credit, or job creation. For the mayor of the Andalusian town of Marinaleda, direct action is the most apt response. In the summer, Sánchez Gordillo and fellow members of the SAT labour union grabbed the headlines by organising “food grabs” in two supermarkets. Activists carted food out of the shops without paying, insisting it would be donated to local charities. Sánchez Gordillo saw this as a symbolic move to illustrate the extent of Spain’s troubles and he also led a series of protest marches and squats on unused land across the south. In Marinaleda itself, the bearded, charismatic mayor claims to have established … [Read more...] about Juan Manuel Sánchez Gordillo
To be or not to be: Catalonia as an independent state
There’s nothing especially new about the present dispute between Catalonia and Spain’s national political leadership. Arguably most of the key arguments date back at least to the 1970s and the end of the Franco era, while the seeds of the present dispute are to be found in the country’s written constitution which was finally put together in 1978, when the threat of military interference in political life was still a real and present danger. Indeed the one thing that both sides of the argument seem to agree on is that the regional system of comunidades autónomas which was established back then doesn’t really work. Equally, after so many years of constant wrangling, most citizens on both … [Read more...] about To be or not to be: Catalonia as an independent state
A “posh hippie” and a bunker mentality in Spain
Those who organised the September 25 protest outside Congress, which saw bloody scenes and dozens of arrests, say they never intended to storm the parliament building and undermine Spain’s democracy. On Thursday, a High Court judge, Santiago Pedraz, accepted the word of the eight people he was investigating on these charges and shelved the case against them. But even though the eight “25-S” figureheads may not have been trying to rattle Spain’s sometimes creaky democratic edifice, unwittingly, that is exactly what they have done. Respect for the institutions of state and the boundary separating them are often flimsy and they looked almost non-existent when the governing Partido … [Read more...] about A “posh hippie” and a bunker mentality in Spain
Hope against hope for Spain bailout aids euro
Welcome to my latest account of changes in the euro exchange rate, covering the 28th September to 5th 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 changes in the exchange rate GBPEUR: 1.2577 to 1.2439 (-1.097%) GBPUSD: 1.6267 to 1.6181 (-0.529%) EURUSD: 1.2933 to 1.301 (+0.595%) Back up for the euro then! Following a fortnight in which the common currency fell against its pound and US dollar, its back up again this week, as the markets hope against hope that Spain requests a bailout. Curiously however, this hope flies even in the face of remarks from Spanish prime … [Read more...] about Hope against hope for Spain bailout aids euro
Catalonia goes Kosovo
One of the most memorable moments in world literature is when Captain Ahab nails a doubloon to the mast of the Pequod. Gold is a good argument, especially in desperate times. In Catalonia, the gold is the taxes, the nail is the term “fiscal deficit” (or “Spain steals from us”) and the mast’s new sails have “independence” written all over them. Money now being the driving force behind Catalan separatism does not take away one iota of its ethnic dimension. The referendum that is now envisaged, and to a lesser degree the upcoming regional elections, will split Catalonia between those who feel Catalan and those who feel Spanish. Both factors combined, the rise of nationalism in an economic … [Read more...] about Catalonia goes Kosovo