Perhaps the most notable aspect of Monday’s opening of the high-speed train link between Madrid and Valencia was not the protest against Prince Felipe (reflecting the ebbing popularity of the Royal Family) or against Alicante Mayor Sonia Castedo (currently experiencing corruption-related issues) or against Prime Minister Mariano Rajoy (for whom no new reason is apparently needed in order to prompt a demonstration). The notable thing was that the protests – and, coincidentally, the celebrations – were so modest. Prince Felipe pointed out that Spain’s high-speed rail network (which every report on the event conscientiously pointed out is the world’s second largest after China’s) is “an … [Read more...] about Tales for Tapas: The right lines
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Tales for Tapas: Management lessons
There had been gloomy predictions that Spain’s global soccer ascendancy might be coming to an end, but Tuesday evening’s victory over France was solid if not stellar. Coach Vicente Del Bosque, in characteristically imperturbable fashion, said the win “helps support the conviction we have in our ideas.” Prime Minister Mariano Rajoy would no doubt love to bask in the same warm glow of vindication, but this week’s economic data suggest he has as much chance of doing that as Scotland have of going to Rio de Janeiro next summer. Perhaps the most surprising (and dispiriting) thing about the latest batch of figures is that they are no longer very surprising. There was more resignation than … [Read more...] about Tales for Tapas: Management lessons
Portuguese take to streets against austerity
It was a demonstration born on Facebook, on Saturday, September 8 - 24 hours after Portuguese Prime Minister Pedro Passos Coelho announced a new tax on all workers. Exactly a week later it was reality - never since the revolution of 1974 had so many taken the streets to express their anger at the government. More than 1.5 million people hit the streets, according to state news agency LUSA. The hub of the protest was Lisbon, where 350,000 people walked two miles from Praça Jose Fontana Square to Praça de Espanha Square. In Porto, the same: more than 100,000 came out to Praça da Liberdade for more than four hours, to show their anger at the conditions resulting from the country's bailout … [Read more...] about Portuguese take to streets against austerity
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?
Spain’s Socialists scuttle the ship
The legislature is limping to a close. Since José Luis Rodríguez Zapatero's conversion to market orthodoxy in the spring of 2010, the prime minister has made no secret of the fact that his sole obsession is to sail the Spanish ship clear of the turbulent waters of a bailout, and he seems set to succeed. But his government's final manoeuvres have unfortunately had the effect of scuttling the lifeboat of Socialism driven by the party's chosen candidate for the November 20 elections. Alfredo Pérez Rubalcaba is an able seaman, but he is navigating into an electoral storm made even worse by the last acts of his former Cabinet colleagues. First came the tawdry deal with the Popular Party (PP) … [Read more...] about Spain’s Socialists scuttle the ship
How Sarkozy “turned Andorran politics upside down”
In 2009, French President Nicolas Sarkozy was responsible, according to the United States, for forcing the head of the Andorran government to give up a reelection bid, having issued a bitter public warning to the tiny Pyrenean principality’s leader about banking reform. The French leader's anger essentially helped the opposition take control of the government, the US believed. Explanations of what Sarkozy said and why he claimed he was “enraged” by the Andorrans are contained in a confidential cable from the US Consulate in Barcelona released earlier this month by the Wikileaks whistleblower site. Sarkozy had accused Andorra of slowing down a modification to the principality’s bank … [Read more...] about How Sarkozy “turned Andorran politics upside down”
Spanish home prices fall faster on tax changes
The income tax filing season for the 2010 tax year, which began on April 4 and ends June 30, will be the last in which the vast majority of Spanish homeowners will be able to write off on their tax returns 15 percent of the interest and capital they pay on their mortgages up to a cap of €9,000. As of this year, only homeowners earning less than €17,000 per year will be able to benefit from the full extent of the tax break, while those earning up to €24,000 will find that the amount they can deduct has been progressively capped at much lower levels than before. Higher income earners will be able to deduct nothing. More than a third of tax payers will no longer benefit from the tax … [Read more...] about Spanish home prices fall faster on tax changes