Of the many bits of bad economic news Spain has received this past year, including finding deficits were higher than expected and growth rates much lower, perhaps no other figure has proven as weighty and daunting as the country’s unemployment rate. Reports released at the end of January saw that number rise to 22.9 percent, adding another dismal headline to the Rajoy government’s first full month in office: nearly 5.3 million people out of work with declines in available positions across the board, from services to the country’s still collapsing construction sector. Capturing the dour outlook of the country’s current situation, The Atlantic’s Derek Thompson summarized the statistics … [Read more...] about Getting to the bottom of Spain’s daunting unemployment rate
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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
Schools protest as Valencia fails to pay up
The absence of funding from Valencia has led to some schools being left without electricity and others having no money for basic resources or unable to replace teachers who are absent. Las Culturas is struggling on a week-by-week basis. So how have they been managing? A representative from the school explained: "The only way we are able to keep the school running is through using the money that people contribute towards lunch. Without this we would have nothing. We would not be able to buy paper for the photocopier or even toilet paper.” The cut in resources has had immediate effects, while other cut backs will have longer-term implications. Teacher pay and conditions are being … [Read more...] about Schools protest as Valencia fails to pay up
Even Spanish TV feels the pain
As part of swingeing spending cuts being implemented at the behest of the European Central Bank, the Spanish government is to slash state broadcaster RTVE’s budget this year by €200 million to €1.2 billion. RTVE’s board says the cuts will have a “devastating impact” on its programming, predicting that its audience figures for its two channels La 1 and La 2, will drop by 8 percent. La 1 frequently tops audience ratings thanks to hugely popular programs such as Cuéntame como pasó — a long-running drama telling the story of a family from the Franco era up to the present day— or fantasy saga Águila roja, and post-Civil War soap opera Amar en tiempos revueltos. But the channel says that the … [Read more...] about Even Spanish TV feels the pain
Valencia’s Camps is off the hook, but something still smells rotten
Francisco Camps has reason to celebrate. The Popular Party’s former president of the Valencia region has been absolved of charges of taking bribes in the form of designer suits and other garments from a businessman at the heart of the Gürtel corruption scandal. After a two-week trial, the jury voted, five votes to four, that the accusations could not be proved. But while Camps has expressed his joy at defeating the conspiracy he says was behind this case, his own party has been less jubilant. Virtually all the senior party figures who have responded to the verdict have advised Camps to take a break from politics, from Valencia mayor Rita Barberá to Alberto Fabra, his successor as regional … [Read more...] about Valencia’s Camps is off the hook, but something still smells rotten
Spain’s tax hike threatens La Liga’s appeal
One of the first moves by Spain’s new Mariano Rajoy-lead Partido Popular government has been to increase the maximum personal income tax (IRPF) rate by seven percentage points to 52 percent for annual salaries over €300,000. Given the shocking state of the Spanish government finances this should not really have been a difficult decision to take, especially considering the small percentage of Spanish tax-payers affected. For most Spanish citizens the most visible losers (of this particular increase) will be the football teams they follow. Spain’s politicians have traditionally been keen to be seen to support football, and a past PP tax ‘incentive’ aimed at attracting higher earners from … [Read more...] about Spain’s tax hike threatens La Liga’s appeal
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?
A short honeymoon for Spain’s Rajoy
When Deputy Prime Minister Soraya Sáenz de Santamaría announced the new Spanish government’s battery of cuts worth €8.9 million plus tax increases, there were plenty of questions in the air. Why such heavy cuts? How will the new tax increases work? Will there be more cuts? The deputy prime minister’s answer to the first query was that the cuts are extreme because the 2011 deficit is 8 percent of GDP, rather than the 6 percent the outgoing Socialists had estimated. Public Administrations Minister Cristóbal Montoro offered detail about the tax rises. And the fact that the 2012 budget has yet to be presented means yes, there will be more austerity measures later in the year, although … [Read more...] about A short honeymoon for Spain’s Rajoy
Spain’s Socialists don’t know where to turn
A new Spanish government takes office and the year comes to a close, but the end is still not in sight for the existential crisis that the country's Socialist Party (PSOE) is suffering. It's a crisis that one way or another, the PSOE has been going through for about 12 months, ever since José Luis Rodríguez Zapatero let slip, around Christmas of last year, that he might not be the party's candidate in the next general elections. The frenzy of expectation was only partially dampened when Zapatero confirmed he wouldn't be running, and the debate over who would succeed him gathered steam. The “debate” turned into a swift rubber-stamping of the veteran Alfredo Pérez Rubalcaba as the … [Read more...] about Spain’s Socialists don’t know where to turn
Iberians of the Year 2011: Spain’s Indignados
From Tunis to Cairo and from Madrid to Manhattan, outrage has been the overwhelming theme of 2011. Outrage at ineffectual, unrepresentative political systems, outrage at coddled elites, outrage at the financial system and the perceived culprits for the economic turmoil that has spread around the world. The year of outrage began on the streets of Tunisia in January, spread throughout North Africa and the Middle East as Arab Spring revolutions unfolded across the region, and, by late spring, the wave of indignation hit Europe. In Madrid in May, the seed of a different style of revolution was planted as thousands of activists - mostly young, many unemployed - set up camp in the city … [Read more...] about Iberians of the Year 2011: Spain’s Indignados