MADRID | March 3, 2015 | By Fernando G. Urbaneja | The creation of 13,500 new jobs in January is in line with encouraging figures elsewhere in the Spanish economy. While there will rightly be optimism in the wake of the latest data, the worrying plight of the youth and long-term unemployed continue to cause concern.
MADRID | By Fernando G. Urbaneja | The macro (and micro) piece of data tarnishing the image of Spain is that of unemployment, an anomaly for a developed economy. It is not new but a problem we have been suffering for the last three decades. Even during prosperity times, unemployment reached double digits (8% in the most favourable moments). The last great recession exacerbated the problem and jobless rate soared to 25%, bluffering analysts and market makers.
MADRID | By Fernando G. Urbaneja | Spanish bank Santander is a powerful battleship, the euro zone´s largest by market cap, one of the world’s leaders, with an outstanding presence on both sides of the Atlantic. It is therefore a complicated engine to move, even slowly. The unexpected death of the company´s chairman, Emilio Botín, in September 2014, brought about the accession of his daughter Ana to the bank´s top post. The younger Botín possesses unquestionable professional credentials, but nonetheless has had to allay fears that any change in leadership can bring about.
MADRID | By Fernando G. Urbaneja | Spanish PM Mariano Rajoy faces 2015 with electoral commitments and weak prospects. The goal of the Popular Party (PP) is to reach enough votes so as to maintain a large part of its power in the Spanish regions and city councils where it has the majority. The final goal is achieving the re-election in the central government by means of achieving the recovery.
MADRID | By Fernando G. Urbaneja | Over the last couple of years, polls have been registering the rise of corruption on the list of the major concerns for Spaniards, and now it is the second largest concern –behind unemployment. At the same time, expectations for the next elections have been plummeting, especially for the major parties, which have been affected most by corruption. Throughout the democratic history of the country, the two biggest Spanish parties usually gathered three quarters of the parliamentary seats. Now, they barely reach half of that amount.
MADRID | By Fernando G. Urbaneja | There is a consensus amongst Spanish economists, who are forecasting a growth in GDP of 1.3% in 2014 and 2% in 2015. The Government shares this view and, on this basis, has already outlined the draft of next year’s budget. It believes that the “recovery and increased employment” phase is already under way, and in fact, that Spain is showing better indexes than the Euro zone average.
MADRID | By Fernando G. Urbaneja | The debate about the independence of Catalonia is at the centre of Spain’s political concerns. The Catalan Government and the parties supporting it -covering a broad spectrum, from the centre to the extreme left- have taken every step to call the referendum (called query) that would open the door to independence. The Spanish authorities have taken steps to prevent a consultation-referendum which it says contravenes the text and spirit of the 1978 Spanish Constitution.
MADRID | By Fernando G. Urbaneja | Spanish Justice Minister Alberto Ruiz Gallardón announced his resignation on Tuesday after the government scrapped his controversial abortion reform plan restricting it to only cases of rape or serious health risks. Although Mr Gallardón had 30-year-experience in politics, president Rajoy let him go –he didn’t want to take the risk of losing more votes in the next elections.
MADRID | By Fernando G. Urbaneja | The death of Isidoro Álvarez, the legendary Spanish retailer and El Corte Inglés chairman, comes at a moment of critical importance to the company. Urgent strategic decisions are required at one of Europe’s most peculiar and inimitable businesses. El Corte Inglés’ model is unique with those with extensive knowledge of the firm concluding that is has its own defining characteristics.
MADRID | By Fernando G. Urbaneja | Hundreds of thousands of Catalonians marched for the third year in a row to claim their national sovereignty. The pro-independence way in Catalonia -which comes from a feeling more than a century old and from time to time strongly emerges to fight for its goal- is behind these demonstrations and tries to capitalize them.