How much does ‘different identity’ account in fiscal transfers between regions and their central government? Catalan president Artur Mas mixes tax data with sentimental issues and accusations of mistreatment, says Fernando G. Urbaneja, so a necessary dialogue becomes unnecessarily difficult.
MADRID | There will be no dividend from Telefónica over the next fifteen months. The decision is not surprising but consistent with the situation. Yet, it has a devastating effect on many investors the company had promised to pay 77 cents in December as a second dividend in the year, and again in May. The company will now retain its full profits within the 2012 balance sheet (€4-€5 billion) to reduce…
MADRID |Fernando G. Urbaneja| Premier Mariano Rajoy did not expect the economic picture to be that overwhelming, although it was predictable, nor former premier Mr Zapatero could believe in May 2010, that he was meant to play the role he so reluctantly played. Both of their reactions are part of Spain's problem: government leaders, alleged leaders dragged from the events who have to act against their beliefs. Ms Rosa Diez (former…
MADRID | “It is time to resort to the International Monetary Fund or the European rescue fund,” wrote in the January edition of Revista Consejeros Aristóbulo de Juan, former Bank of Spain's director general of inspection. Even Banco Santander's chairman Emilio Botín, who's always shown his antipathy to salvage competitors with his money or the taxpayers', acknowledged that the Spanish banking sector needed some €40 billion in European aid to…
MADRID | Spain’s minister of Economy Luis de Guindos suggested, almost announced, without giving away much detail immediate reforms in health care and public education to adjust the final accounts of the State. The new austerity measures are meant to touch the very nerve in public spending since both departments sum up to one third of total government spending, apart from the pension system that belongs to another cash register. The…
MADRID | Governments become arrogant over time and the more arrogantly they behave, the worse they do their job. Indeed, arrogance is usually a bad influence, as it leads to confusion and errors. Former president of Catalonia and an old hand in Spanish politics, Jordi Pujol, in his latest memoirs wrote of former Spain’s presidents that José María Aznar’s political ambition dwindled away because of his pride and Rodríguez Zapatero’s did so…
MADRID | Spanish Finance minister Luis de Guindos bears the unpleasant task of playing the wet blanket, being realistic, not promising anything but selling a future. His role is that of the victorious Caesars’ companion, who had to whisper in their ears: “remember you are mortal”. In the government and in front of the citizens, he is the one who spoils the fun. For that he needs a great deal of…
MADRID | The general strike announced for March 29 will be the ninth in Spain’s modern democracy, the 12th if we start counting from the day dictator Francisco Franco died. The general strike is part of unions’ mythology, meaning a show of extra impact and a demonstration of power. There were revolutionary general strikes in 1917 and 1934, even in July 1936 after the coup d’état that was later called Alzamiento,…
By Fernando González Urbaneja, in Madrid | Explaining the Spanish public deficit problem in 2012 in terms of confrontation between the government of Mariano Rajoy and Brussels is wrong and misleading. So far Brussels has not penalised members who do not meet their programmes, but has rather come to help achieve the objective, with more or less enthusiasm and more or less requirements imposed. Brussels may begin proceedings for an excessive…
MADRID | Original post on republica.com | The European government, which some now call ‘governance’, has not been doing well for quite a few years. The expansion of the club during the last two decades has caused chronic indigestion, and a loss of perspective and project steam. The Single European Act (last decade of the XX century) meant a decisive step forward for a united Europe at peace, free, and…