THE TRIBULATIONS OF THE GOVERNMENT OF SPAIN IN FRONT OF THE SEVERE ECONOMIC CRISIS

    As could be expected, the new Government of Spain is finding many difficult to solve the deteriorating situation inherited from the previous socialist Administration. The widespread economic crisis that, from more than three years, we have been suffering, coupled with the inability of the various governments headed by Zapatero (the most incompetent of all those we had on our young democracy), has brought to light many shortcomings and has led us to a real emergency situation, positioning us at the bottom of Europe, overcome, so far, only by Ireland, Greece and Portugal. With unemployment exceeding twice the average of all countries of the EU, an excessively high risk premium which raises the cost of debt financing, a fall in public and private investment, a consumption  reduction of the families, a markets that speculating on our future, and some European leaders, as the case of French President, Nicolas Sarkozy, or the Italian Prime Minister, Mario Monti, raising doubts about our ability to recover, the future appears quite gloomy. No doubt it will be necessary to take hard and unpopular measures, which will provide an extra effort upon the already loaded  backs of the Spanish, but, above all, it is essential that these are fast, conclusive, successful and effective. Since the problem is known, where the Government can not err is in the solutions to be applied; the present circumstances already not allow further experiments or further delay. If Spain, as we begin to point out some means natives and foreigners, would see in the need to accept a bailout, the situation would become dramatic and the effects for the Country would be devastating. The consequences of an intervention not only would represent a real loss of our sovereignty, but also condemn the Spanish for not lift his head by many years.

    Regarding the above, there is no denying that the Government, led by Mariano Rajoy, worried and busy for all that, is moving quickly. The steps being taken, in the short time that the executive has been in office, and the scale and importance of them, denoted a firm will take the path that leads gradually to the desired recovery. In any case, much remains to be done: more settings, more reforms, policies of economic recovery, and, over all, a priority, review the current regional and municipal model. Of all the entire set of measures which, necessarily, have to be implemented by the new Government, with the political cost of doing so (labor reform has already led to the first general strike, within the first 100 days of legislature), what, in my opinion, will have more difficulties and that, moreover, I consider as sine qua non condition, is the  reform of  current  regional and municipal system: monumental, disproportionate, inefficient and unsustainable, that, besides being a drag our economy, is generating a high level of distrust in both international markets and in our community partners.

 

    It is not understandable, or acceptable, that a country like Spain with a population of approximately 47 million inhabitants, has the most complex administrative structure of Europe, with a measurement that is more than 20 times that Britain has, despite to have more than sixty million people, and this to name just one example. If to the seventeen autonomous communities, monstrosity created in this country, unprecedented on the planet Earth, halfway between central state and a federal system,  join the two autonomous cities of Ceuta and Melilla, and the councils, counties, municipalities and smaller local authorities, etc., we found with 19 autonomous governments, 8.116 municipalities and more than 3.000 small municipalities, all this without the citizens have gained one iota in efficacy, but on the contrary,  multiply services and functions, contributing to the confusion and the disorder among agencies, with consequent damage to citizens.  The most regrettable thing is that this whole framework, established with the excuse of bringing the administration to the citizen, the only thing that has helped is to satisfy the interests of a political caste shameless and unethical, allowing them to create thousands of lucrative jobs absolutely unnecessary, both the Administration and in the complex web of public enterprises founded for that purpose, of doubtful effectiveness and lack of profitability, besides feeding speculatives business and encourage patronage of the parties. This all, of course, to meet the pharaonic megalomania of politicians themselves at the expense of squander the money contributed by all the taxpayers; cheated and fleeced. Nobody can understand or support all the necessary budget cuts that have to be addressed, in order to be able to balance the accounts of the state and sovereign debt control, if this affect the quality of services or of benefits in sectors as sensitive such as health or education, without cut off previously the excessive spending of maintaining of general government, ending, once and for all, with this untenable situation that is throwing away, without shame, and without justifiable compensation, thousands of million euros; capital that could ease many of the sacrifices that will have to suffer the citizens, due to the many mistakes committed since the enactment of our present Constitution, and that, necessarily, have to be corrected.

    All crises, regardless of the adverse effects which may be associated, are often conducive to correct imbalances and abnormal situations that, in good times, may be more difficult to approach.  In our case, and given that it is also part of the problem, is necessary to end to that sort of Taifa kingdoms in which they have become the current autonomies, with developing political and administrative regimes parallel and independent that led to the dismemberment of the State, leading to disparate and unassumable costs to our economy, also taking advantage of the situation to bring order into other smaller administrative entities: county councils, municipalities, and so on. If now, that is the right time, is not undertaken this work, the patient, ie Spain, could improve, but will be exposed to a recurrence that probably will not be able to overcome. Some critics, like the case of the President of the Community of Madrid, Esperanza Aguirre, the highest representative of the liberal section  of the People's Party, have already taken a first step to put into consideration the return on the Government of Spain of competencies in education, health and justice, reaching a figure of about 48.000 million euros in savings, what such a move would entail. From this figure it is not difficult to imagine the astronomical expenditure that is being generated by the poor construction of the Autonomous State and the amazing savings that we would get with a rational management of this. The article 155 of the Spanish Constitution in force, allows the Government, with support from the Senate, can take corrective action against any autonomous region when occur a chaos that undermines the public interest, a situation that is already being produced and that,  for not be faced, is getting worse over time. What remains to be seen, is whether the current president, Mariano Rajoy, will have enough political courage to tackle this sensitive issue, taking into account that would leave without work thousands of political absolutely unnecessary, some of them of his party, of course, since most of them would have no choice but to look for life on other tasks and that, in many cases, not would exceed a competition for beadles of secondary schools. For now, the President, does not seem very willing for that, but the time, the special circumstances, external and internal pressures, and the whole set of avatars that occur in high-level policy, could change even the most enduring convictions.  If this is achieved, would be good for Spain and for the whole of the Spanish, except for those directly affected, of course, although, for these latter, would be a logic penance associated so they can purge the alleged abuses committed.

    What is certain is that we have a long way to go and many difficulties to overcome; but, as hope is the last thing that to be missed, there will have to put much faith in that the storms, that yet to come, will not deviate us from the true course and, although we can finish something battered,  we can, finally,  achieve a successful.

C. Diaz Fdez.
Oviedo April 17, 2012