“I didn’t get into politics because I wanted applause or money … I got into politics because I wanted to change things.” So said Prime Minister Mariano Rajoy on Saturday as he gave his first proper public response to allegations published by El País that he was among many politicians who took under-the-table payments from a longstanding Partido Popular (PP) slush fund. But it doesn’t take a cynic to observe that very little has changed during Rajoy’s first year of government, despite his fighting talk at the weekend. As if to remind us of the fact, today he travels to Germany to meet Angela Merkel and discuss yet again the woes of the Spanish economy, on the same day that new … [Read more...] about Rajoy is a liability for Spain if he can’t clear his name
spain
Has Spain’s economic contraction become self-perpetuating?
Spain’s political leaders are in cheerful mood at the moment. According to the country’s Economy Minister Luis de Guindos, the Spanish economy will return to growth in the second half of 2013. “The perception of the Spanish economy has improved and will continue to do so over the coming weeks and months,” he told his audience at the World Economic Forum in Davos. Earth-shattering it will not be, but grow it will, he insisted. Perhaps, he suggested, the economy will be stationary in the third quarter, with very slight growth in the fourth. And quite possibly he is right. The core of the problem is whether any faltering growth emerging in the last three months of the year will be sustained … [Read more...] about Has Spain’s economic contraction become self-perpetuating?
La Liga: Rayo Vallecano defy the odds to keep riding high
They are not the first, second, or arguably, even the third team in Madrid, but they are already in position for a Europa League place and currently sit one point away from the Champions League spots. It is an even more impressive feat given that this is a club in administration, a team that was almost relegated to segunda on the final day of last season and that lost both its manager in the summer and a total of 13 players including their star, Michu, who is currently lighting up the Premier League. Rayo Vallecano are defying all expectations. While Atlético Madrid and Real Madrid sit in second and third respectively, the other team from the capital are just a point behind Málaga in … [Read more...] about La Liga: Rayo Vallecano defy the odds to keep riding high
Scrupulously ridiculous
On Wednesday, the Catalan parliament voted on a Declaration of Sovereignty that is meant as a cornerstone for a referendum on independence envisaged for 2014. It was backed by CiU and ERC, which supports the minority government, plus the eco-communist ICV. The unionist Ciutadans and the Partido Popular (PP) voted against, as did the majority of the Catalan Socialist Party (PSC), although five of its deputies abstained in protest against the party line. This declaration is best defined by what it is not. It did not create a united front against Madrid. It did not garner the support of the two-thirds of the Catalan parliament necessary to change the Catalan Estatut, missing a benchmark … [Read more...] about Scrupulously ridiculous
The next Spain
There’s an overwhelming consensus all across Spain that “we can’t go on like this”. Yet there’s an equally determined belief within the Rajoy government that we can, and in fact will, go on like this until it somehow gets better. Which means that someone – either the government with its faith that everything will come out well, or the entire population of the country, who believe that it won’t – has got it wrong. In this article I will take it as an assumption that the existing state of Spain will not be able to survive long enough to hold general elections again in 2015, and that therefore Rajoy’s Partido Popular government will be the last of the 1978-model Kingdom of Spain. How will … [Read more...] about The next Spain
Here comes the sun
Time for Spain to defy expectations as it battles corruption
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
La Liga: Depor find fortune on pitch despite financial woes
In a week when Deportivo La Coruña filed for bankruptcy protection, you would think a club which is €99 million in debt would not have much to smile about. But the Galicians, who currently sit in 19th place in the league table, seem to be slowly turning around their fortunes on the pitch with the help of their new manager. Drafted in during the winter break to replace José Luis Oltra, who was at least not given his marching orders until after he had enjoyed Christmas day, Domingos Paciência got off to the best possible start in his first match in charge when his new team beat high-flying visitors Málaga 1-0 thanks to a goal by Luis Pizzi for their first win in two months. The … [Read more...] about La Liga: Depor find fortune on pitch despite financial woes
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
Leaving the water running
History was made this week in Spain. For the first time that anyone can seem to remember, a political party admitted to corrupt practices. The party was Catalonia’s Unió, part of the region’s CiU governing coalition, and the corruption was the funnelling of €388,000 of EU funds meant for job training into the party’s coffers in the 1990s. Much of that cash was spent on furniture in Unió’s offices and on paying wages to party staff who, it transpires, didn’t actually do anything. So the admission of guilt was welcome at a time when corruption seems to have become such an endemic part of Spanish politics. But the reason for Unió’s admission is that it is part of a pact with the State … [Read more...] about Leaving the water running