Showing posts with label EU. Spain. Show all posts
Showing posts with label EU. Spain. Show all posts

Thursday, July 22, 2010

Republican complacency. But whose agenda?

Do they need a stronger agenda? Some would argue yes:

Get With the Program
[...] If GOP consultants who are advising the party to avoid embracing a substantive agenda prior to the November elections get their way, this will be the pitiful Republican dance for the next three-and-a-half months.

We understand the Republicans’ temptation to believe that they can beat the Democrats with nothing. The public has recoiled from President Obama’s agenda and seems set to swing to the Republicans as a check against his liberal overreaching. Why not just play it safe and ride the wave that’s already building?

One, this wouldn’t be as safe as it seems. The consultants think Republicans risk putting targets on their backs by associating themselves with particular policy ideas. But Republicans will be targeted regardless. The White House wants to define them as mindless apostles of “No,” and as “Bush Republicans.” Both of these charges could hurt, and they are more likely to stick if Republicans lack a forward-looking agenda of their own.

Two, a campaign agenda is, if nothing else, a sign of seriousness for voters. The danger in the kind of cynical calculation urged by the consultants is always that the public will recognize it for exactly that and react accordingly.

Three, if Republicans plan on having a majority in either house after November, they had better have some idea in advance of how they will conduct themselves in power. If they have an agenda that has won at least loose assent from voters, they’ll be better-off than if they were trying to come up with something on the fly in the flush of victory, when giddiness will rule and special interests will all want a piece of the pie.

Fourth, Republicans should have confidence in their ideas. If they can’t offer an alternative to Obama now — with the president sagging in the polls, with tea partiers in the streets, with conservative sentiment on the upswing across the board in the public — they should be in a different business. This needn’t entail recklessness. The Contract with America of 1994 wasn’t a radical document, but it did point in a clearly different direction than the Clinton Democrats. This is what Republicans need now (watch this space for our ideas) and what House Republicans have been planning on — so long as they don’t flinch. [...]

My fear is though, that the Uber Conservatives are going to push social issues as the spearhead of the party. That would be a mistake.

Spain's economy is collapsing. It's been doing poorly for a while. Conservatives there have not been able to win elections, despite the poor economy. Why? Because their conservative party is dominated by people who wish to push unpopular social issues, that the majority of voters don't agree with. So the economy there continues in it's downward spiral.

Here at home, the Republican's need an agenda, but it must be one that the majority of voters can gather behind. It should be about jobs and the economy, first and foremost.

I don't expect social conservatives to give up their issues, but those issues should not be the spearhead of the party. We need a large tent, with a spearhead that the majority of voters can rally behind.

Swing voters matter. People who are not rigid social conservatives are not RINOS. If social conservatives insist on drumming all who are unlike themselves out of the party, then we will follow the path of Spain. Or worse.

This next election is ours to win or lose. And it may be the last chance to save our Republic.

And for an agenda that many can rally behind, perhaps Paul Ryan's roadmap would be a good place to start:

'Roadmap' a realistic plan to remake the tax system
[...] The Wisconsin Republican's Roadmap is not a "reactionary" document, as the left usually describes most anything that involves substantially reducing the size, scope and cost of government. It doesn't seek to turn back the clock. Rather, it breaks with a strain of libertarian logic that is always at war with the State, while staying true to the idea that the best government is the one that governs least. It advances libertarian ends by admitting the limits of libertarian means.

The key to Ryan's do-over is acknowledging that America will never eradicate the welfare state entirely for the simple reason that Americans don't want to eradicate the welfare state entirely. The Roadmap explicitly declares that the social safety net — in the form of health and retirement benefits — for those "suffering hard times" is something Americans want to keep. On this and other fronts, the document is a monumental concession to political reality. [...]

It may not be perfect, but it doesn't have to be. It only has be good enough for the majority of voters to agree with, and better than the alternative that the current administration is trying to force down our throats. And THAT, it is.

     

Sunday, June 20, 2010

Spain: caught between a rock and a hard place

Spain: A Political Risk Analysis
Spain is in the throes of the worst economic crisis in its recent history. Reeling from the collapse of a debt-driven construction boom, Spain entered recession in the second quarter of 2008 and posted six consecutive quarters of negative growth. Although the economy grew by 0.1 percent during the first quarter of 2010, Spain’s growth prospects are poor and any pick-up could be short lived.

Spanish GDP fell 3.6 percent in 2009, and a package of harsh austerity measures announced since then will undermine any economic recovery during the foreseeable future. The International Monetary Fund (IMF) says there will be no positive GDP growth in Spain until 2011, at which point it will still be below 1 percent. The Spanish Finance Ministry on May 20 said it now predicts a 0.3 percent contraction in 2010. It also cut the forecast for Spanish growth in 2011 to 1.3 percent from 1.8 percent.

Meanwhile, Spain now has the highest unemployment rate in the European Union. More than 20 percent of working-age Spaniards (or 4.6 million people) were without a job during the first quarter of 2010. That compares with an average rate of 10 percent among the 16 countries that use the euro currency. Persistently high unemployment presents an obvious threat to political stability in Spain.

As unemployment soars, Spain is also facing an exploding budget deficit. The collapse of the labor market, which has resulted in a steep drop in tax collections, and the Socialist government’s spendthrift policy response of increasing unproductive public sector stimulus spending skyrocketed the deficit to 11.4 percent of GDP in 2009 (or five times higher than in 2008).

The combination of negative GDP growth, rising unemployment, and a high deficit has raised concerns about the sustainability of Spain’s finances. Indeed, two international ratings agencies, Fitch and Standard & Poor’s, have recently lowered Spain’s long-term sovereign credit rating, citing the risk of a prolonged period of below-par economic growth and persistently high fiscal deficits.

The downgrades will make it more expensive for Spain to finance its debt, and increase concerns over Spain’s overall creditworthiness. Indeed, investors anxious that a debt crisis in Greece could create a domino effect in Spain are already demanding higher interest rates to hold Spanish debt.

Although Spain’s problems have been known for years, concerns about the Spanish economy were thrust into the international spotlight in January 2010, when noted New York University Professor Nouriel Roubini said Spain posed a major threat to the stability of the European single currency. Speaking from the World Economic Forum in Davos, Switzerland, Roubini warned: “If Greece goes under, that’s a problem for the eurozone. If Spain goes under, it’s a disaster.”

A debt crisis in Spain would make the problems in Greece look tame by comparison. At €1.3 trillion, the Spanish economy is more than four times the size of Greece’s. (While Greece represents about 2.5 percent of eurozone GDP, Spain accounts for about 11.5 percent.) Spain is also the fourth-largest economy in the 16-nation euro zone, the eighth-largest in the OECD, and the tenth-largest in the world. Many analysts believe Spain is simply too big to be bailed out, and that a Spanish default would almost certainly lead to the breakup of the euro zone.

Fearing for the future of the euro, the European Union and the IMF have put intense pressure on Spanish Prime Minister José Luis Rodríguez Zapatero to implement a series of austerity measures aimed at bringing the public deficit down to a eurozone limit of three percent of GDP. [...]

Read on to see the many reasons why that can't happen. The current government won't survive if they do what they need to, but if they don't do it...
     

Wednesday, February 10, 2010

Is the EU’s currency, the euro, in trouble?

Apparently the Euro is threatened, because of Spain and Greece:

The EU’s Horrible Honeymoon
[...] At this point Europe is not even halfway its 100-day political “honeymoon” since the Treaty of Lisbon, which transformed the EU into a state in its own right, came into force. So far the honeymoon has been a nightmare. Since the beginning of the year, the EU’s currency, the euro, is on the brink of collapse; Greece has been placed under EU financial supervision to prevent it from going bankrupt. Now U.S. President Barack Obama has announced that he will not attend next May’s EU summit in Madrid. It was to have been Obama’s first visit to post-Lisbon Europe – the consecration of the new political order.

[...]

Although Obama’s snub hurts Europe’s pride, the euro’s monetary problems are far more serious. They not only affect Europe’s finances and economy, but may also tear down the political EU framework. When the European Commission placed Athens under EU supervision last week, Greece was almost bankrupt. Brussels has forced the Greek government to present a plan to drastically reduce its budget deficit from 13% to 3% by the end of 2012. The plan will cost the Greeks blood, sweat and tears. It includes a freeze on civil service wages and the postponement of the retirement age. Brussels has invoked new EU powers under Article 121 of the Lisbon Treaty, which allow it to reshape the structure of Greece’s pensions, healthcare, labor market and private commerce.

“The envisaged correction of the deficit is feasible but subject to risks,” says EU Commission President Barroso – an understatement. The Commission fears a backlash from the Greek unions, who might organize strikes and bring down the Greek government. Trade unions in other countries are nervous, too. They warn that it is unacceptable that the European Commission intervenes in setting national wages.

The EU’s Monetary Affairs Commissioner Joaquin Almunia declared that the Greek targets will be enforced strongly and that, if necessary, even more draconian measures will be taken. “Every time we see or perceive slippages, we will ask for additional measures to correct these slippages. Never before have we established so detailed and tough a system of surveillance,” Almunia said. He has demanded quarterly updates on progress towards reduction targets, as well as a first report on 16 March. “This is the first time,” he said, “we have established such an intense and quasi-permanent system of monitoring.”

Much is at stake. In the coming weeks, the strength of the euro will depend on whether the markets believe that the government in Athens is strong enough to implement the reforms or trust that the other eurozone countries will bail out the Greeks. This year the eurozone governments have already borrowed a record €110bn from the markets, thereby forcing up the cost of borrowing for countries with the weakest public finances, such as Greece, Portugal, Spain, Ireland and Italy.

[...]

Even if the situation in Greece can be stabilized, the EU’s nightmare is far from over. The next eurozone dominos that might fall are Portugal and Spain. Portugal’s deficit reached 9.3% of GDP last year, Spain’s 11.4%. [...]

The article describes how there is a great deal of resistance to the idea of "bailing out" Greece, and that Greece may even be "excluded from the Eurozone" before a bailout were allowed to happen, although such an exclusion would contravene the laws of the EU.

But worse still, is the threat of Spain's financial collapse. It has the fourth largest economy in the EU. If it fails, it will be devastating for the EU.

     

Thursday, June 05, 2008

Illegal Immigration is a Pain to Spain. But is it also making Spain the Gateway to Europe?

Spain granted an amnesty to almost a million illegals three years ago, the largest amnesty in Spain's history. Today, they now have another million illegals, along with a soring crime rate and growing unemployment.

Recently Spain has been attacking Italy's new government, which has been cracking down on illegal immigrants in Italy. More from Soeren Kern at the Brussels Journal:

Why Spain Lectures Other Countries on Immigration
Italian voters in April returned Prime Minister Silvio Berlusconi to a third term in office. The center-right leader was given a strong mandate to crack down on runaway immigration and spiraling street crime, two hot-button issues that are intrinsically linked, not just in the minds of Italians, but in those of many other Europeans too, especially in Spain.

As a result, Spanish Socialists are (rightly) worried that Berlusconi’s get-tough approach will jeopardize their own fantastical vision of turning Europe into a post-modern multicultural utopia.

[...]

Since Spanish Socialists (more often than not) have trouble winning arguments on their own merit, the preferred tactic is to demonize their opponents instead. And so De la Vega’s comments were echoed by the new Spanish Minister for Labor and Immigration, Celestino Corbacho, who felt obliged to accuse Berlusconi of wanting “to criminalize those who are different.”

[...]

Apart from the strategic threat that Italy’s immigration crackdown poses to the post-nationalist multicultural vision that Spanish Socialists have for Europe, there are two more practical (and inter-related) reasons why the Socialist Party has latched onto the immigration issue: Domestic politics and fear that the immigrants expelled from Italy will come to Spain instead.

During the recent general election campaign in Spain, survey after survey showed that Spanish voters perceived the center-right Popular Party to be far better equipped than the Socialist Party to tackle the issues of immigration and crime.

[...]

As a result, the Socialists are now trying to make these issues their own. But they are doing so by reframing the question of immigration through the use of post-modern word games that give the appearance that they have a more benevolent approach.

[...]

By rewarding illegal immigrants with Spanish (and thus European) documentation, Zapatero has unleashed what is known as the “call effect” to people as far away as Kashmir who now believe that Spain is an easy gateway into Europe. [...]

It's quite a dance Spain is doing. The article goes on to give more details of Spain's predicament, and how it fits into immigration in Europe as a whole. The socialists in Spain have been using every trick in the book to vilify their opponents, but it's wearing thin as reality sets in and grates away at the Spanish Public. Their current government sounds like the city council of Berkeley, CA. Strident and hysterical, posturing while lacking real content or ability to accomplish or solve anything.

Lots of high drama in this story, with accusations being hurled. But as the pressure builds, it looks to me like... somethings gotta give. I'll be watching.