Economist: Spain's happy-go-lucky government: When good politics is bad economics

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Spain's happy-go-lucky government: When good politics is bad economics

Luis Rodríguez Zapatero stands out among the small band of centre-left heads of government in Europe because he has managed to keep his head more or less above the political waters (see article). Next door in Portugal, the socialist government looks headed for defeat in an election in September; so does Britain’s Labour government next year. But Mr Zapatero’s Socialist party has slipped only slightly behind the opposition People’s Party, according to an opinion poll this week. Even if Mr Zapatero himself is less popular than he was, he still bests Mariano Rajoy, the plodding opposition leader. That is despite an unemployment rate that has shot up to 19%, double the average in the euro area.

Mr Zapatero seems to be counting on inertia to pull his country out of its slump, allowing him to win a third term in 2012. He will be lucky to get away with it. Even if he does, it is a formula for the Italianisation of Spain. Put off the pain of reform now—and recovery will take longer. As Spaniards head for la playa, it is time their government told them so.

The Independen: José Luís Rodríguez Zapatero: The Spanish presidency of the EU will focus on global solidarity

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The Spanish presidency of the EU will focus on global solidarity

The Spanish Prime Minister José Luís Rodríguez Zapatero who was speaking to a gathering of the Association of European journalists last week said: "A multipolar world is offering Europe a whole set of new chances for leadership, but we must make the most out of them. When Spain takes responsibility for the EU presidency we will turn to Africa, a continent that is progressively becoming more important. As to Russia, we must integrate it in the Euro-Atlantic space we are currently creating. And then, of course, the Middle East, and the efforts Europeans must make in order to achieve regional peace and stability, which must be built from scratch after the consolidation of the ceasefire and the re-channeling of a peace process between the Israelis and Palestinians. We are going to promote, firmly, the European Security and Defense Policy. We will try to promote the development of the revised European Security Strategy, planning our strategic targets according to the missions, capacities and partnerships. Before that, and since it is closely linked to it, we intend to elaborate a National Security Strategy, which I think will be very useful for the Government, but also for citizens to understand the challenges we face.

In a world characterized by uncertainty, after the collapse of the two great models that developed over the previous century, we will need a model and the new great commitment of both governments and societies in order to overcome this crisis. That model is Europe’s model, because Europe is, in the first place, the so-called “pax europea”. This European peace entails co-existence, rights, welfare, creativity and freedom. It is a guarantee to guide us in a multi-polar world, whose stability is based upon sustainable development and solidarity. The European peace is, and has been for 30 years, the best way for Spain to defend its principles and interests."

Note EU-Digest: Progressive thinking on the future of the EU by Mr. Zapatero. That is the way to go if the European model is to succeed. Bravo !

Economist.com: Spain: Zapatero's bear fight

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Spain: Zapatero's bear fight

The surprise ingredient in the Spanish election of March 2004 was the Madrid train bombings, which killed 191 commuters just three days before the vote. Thanks to the clumsiness of the outgoing People's Party (PP) government, which tried to blame Basque terrorists, not Islamist radicals, the bombs provoked an unexpected change. What had looked like a PP shoo-in turned into a Socialist bounce-back, handing victory to José Luis Rodríguez Zapatero, now Spain's prime minister. Four years on, Mr Zapatero is seeking re-election. This time, too, a surprise ingredient has arrived ahead of the March 9th poll. But, despite the recent arrest in Barcelona of 14 Muslim immigrants suspected of planning fresh attacks, it has nothing to do with Islam. After four years in which Spain's politicians have argued bitterly about almost everything else, the new ingredient is the economy.

Few would have predicted this even six months ago. An economy growing at a healthy lick of 3.8% seemed to be one of the strongest of Mr Zapatero's weapons. But since then Spain's housing bubble has burst and inflation has risen. Global financial turmoil now threatens to turn a hoped-for soft landing into something much harder.