| FIRST FEMALE PRIME MINISTER OF SPAIN. | | | | accounted to over 60 % of the restaurant and bar |
| Esperanza Aguirre set to take the wheel. | | | | trade. Additionally, property purchase taxation is now |
| By Michael Mifsud. | | | | dependent on municipal valuation (and not democratic |
| Her name means hope but in this instance it means a | | | | free market valuation) of property, rendering buyers |
| little more than that, for the very presence of | | | | vulnerable to as much as double the amount. The local |
| Esperanza, the controversial and sophisticated | | | | council amazingly determines what the property should |
| President of the Madrid Community, already speaks of | | | | have sold for, taxing it at whatever figure chosen - an |
| her future role in the leadership of Spain. | | | | unethical tactic hitherto unseen in Europe. In the |
| For those with a feel for the urges of destiny and its | | | | private sector this would be called fraud. The legal |
| political “expressants”, there is no shadow of | | | | system is incapable of blocking what even its own |
| doubt about the outcome of the next general elections | | | | administrators, classify as illegal tactics based on a |
| which may come sooner than the intended end of | | | | form of indirect taxation much criticised by the |
| term vaunted by the present Prime Minister, Luis | | | | European Authorities. Europe however, simply |
| Zapatero. But things are not easy in the Iberian front | | | | denounces. |
| as the economy begins to illustrate what many have | | | | Esperanza Aguirre stands in the wings with no magic |
| suspected and which most have papered over – | | | | wand, but already her foreign public appearances have |
| that it was never there in the first place. It certainly | | | | ingratiated her to the citizens with her liberal approach |
| looks like that with the disastrous economic figures that | | | | to social structures and now see her as a potential |
| should have, by now, forced the country into ruinous | | | | Margaret Thatcher for the country. She is probably the |
| bankruptcy. Spain is a relative newcomer to the | | | | only Spanish politician of any standing who can speak |
| modern world of Europe and its strategic position | | | | good English and she is viewed with caution by those |
| within the landmass, made her a useful ally and | | | | whose power would be left in the shadows if she |
| potential partner in the construction of a unified | | | | made her way to the leadership of the party. There is |
| economy. It has not turned out that way with a | | | | a hint of optimism in political circles that this will not take |
| tendency on the part of the lower European members | | | | too long. Both the previous Prime Minister, Jose Aznar |
| to dig into an antiquated and reclusive nationalism | | | | and the present Mariano Rajoy have left Spain |
| directly contributing to increasingly convergent | | | | particularly unimpressed with their theatrically structured |
| economies set out to carve their own courses at the | | | | and hollow attacks on the present Socialist ruling party |
| expense of the genuine European contributors. Spain, | | | | and it is very doubtful that either will make it to the |
| like Portugal and Greece has not emerged from the | | | | next General Election. A similar situation arose in the |
| downturn produced by the simple lack of tourists and | | | | Thatcher days and it was a foregone conclusion that |
| the incredible property bubble that has all but | | | | the thrust of a totally novel concept into what |
| destroyed the majority of the foreign investors whose | | | | appeared to be a never ending, crisis ridden, political |
| nest eggs have been dragged into the vortex. Little | | | | scene would attract voters. It did and temporarily |
| hope of recuperation and crippling designer taxes set | | | | shook the country to its feet. The same happened in |
| on taking whatever is left from those who left their | | | | Turkey and Pakistan with results too difficult to |
| own shores to settle in what appeared to be an idyllic | | | | interpret out of context, but without doubt, Spain will be |
| place, has brought many to the point of rescue by | | | | the next entrant in the female achievement scenario. It |
| other members of the family. The hot spots like the | | | | will also, for reasons to do with her liberality and lack of |
| Costa Del Sol, overbuilt and incapable of controlling its | | | | the sort of chauvinism which is killing Spain, prove to be |
| own effluence has further damaged the delicate | | | | a future platform on which a hopelessly lost economy |
| ecology of the one time enchanting Mediterranean | | | | can be restructured within intelligent and more family |
| seashores. | | | | and business oriented efforts. |
| Concentration on massive building on ribbon | | | | A Woman of Destiny |
| development scale has completed the picture of what | | | | Esperanza Aguirre studied law and like Thatcher |
| is now a social wasteland devoid of the basic | | | | whom she confesses to have been attracted by |
| recreational necessities for communal living that does | | | | (except for her stance on the Tyrant Pinochet), keeps |
| not end up consequently, at the local bars. Greed and | | | | her iron rod well hidden from public view, showing a |
| corruption has destroyed an economic dream gone | | | | Shirley McClaine front that reveals little other than the |
| sour, but worse, as tourism, the lax and lonely | | | | impact of her innocuous, not so politically correct, |
| supporter of the national budget, threatens to bring a | | | | occasional remarks. She is the mother of two and |
| veritable house of cards down. No significant effort | | | | married to an aristocrat who also happens to be |
| has been made to create employment and worse still, | | | | successful in his career. She is presently President of |
| where the effort has succeeded to keep the figures | | | | the Madrid community equivalent to the London |
| apparently moving, it has been in the public sector with | | | | County Council and one time President of the Senate |
| a Government bill and employment ratio that speaks | | | | which is also equivalent to an, Upper House |
| volumes of political incapability of understanding the | | | | Parliamentary Speaker. Political conflict has never been |
| nature of genuine job creation. In the worst hit ares of | | | | her chosen aim, but within the ranks of the right wing |
| Southern Spain political opponents have thrown out | | | | party, Partido Popular, her liberal characteristics have |
| facts that have underlined the wasteful nature of | | | | kept its leaders casting glances in her direction with a |
| national and local political expenditure with successive | | | | degree of disquiet. Some serious brush ups with both |
| governments spending on itself and its own and | | | | the leader Rajoy and the uninspiring, ever popular, |
| neglecting the struggling businesses without which | | | | Mayor of Madrid, Gallardon have enkindled what is |
| there would be no employment at all. Classification of | | | | now a dawning realisation - that she will lead the party |
| employment within the public administration needs a | | | | to electoral success. |
| category all of its own, since, in the main it is not a net | | | | During the course of the year, events will force her |
| contributor to the national economy and clearly, an | | | | into the open as the crumbling support for who must |
| unbridled expense. This adds on to the practically | | | | now be the most disliked leader in Spanish history, |
| inexistant export market and steady decline in | | | | Zapatero, reach dangerous levels of public unrest. |
| production infrastructure with China supplying practically | | | | Whilst not all the ills of Spain can be laid at the feet of |
| every item of expendable, low cost consumer goods. | | | | this relatively young but weak socialist, it is now |
| Questionable Attitudes | | | | increasingly obvious that despite the major institutional |
| The lack of industrial production or the resettlement of | | | | and economic changes that he pontificates at every |
| desperately needed foreign producers on the Iberian | | | | turn, both unions and rabid left wingers frighten him into |
| shores are linked with national deterrents based on | | | | submission at every turn. Labour and judicial legislation |
| narrow interests in state revered monopolies and the | | | | which lie at the heart of lack of serious investment, has |
| cost of hire and fire of local labour stuck in antiquated | | | | been tackled in this expected time bomb now full of |
| and aggressive, overprotective unions. Modern | | | | grey areas, which converts it into a disappointing |
| production units with built in social and entertainment | | | | useless squib. The balance of support for industry and |
| centres in the style of the British contribution to the | | | | stimulation of confidence in overprotected employees |
| Spanish economy in the early 20th. Century, have | | | | lends no credibility to a new scenario, where |
| been conspicuous by their absence despite the | | | | employers can distill quality and contribution from a low |
| obvious case for a proliferation of such efforts. These | | | | standard labour pool intent to work arrogantly and |
| would have pushed Spain into the 21st. Century | | | | exclusively for the periods of paid unemployment it |
| without any formal dependence on cheap tourism and | | | | provides in the future. Spanish labour syndicates |
| modern infrastructures demanded by the new wave | | | | continue to militate for shorter and shorter working |
| of foreign residents. Both factory and villa in the sun | | | | hours, longer holiday periods, more festive days and |
| would have opened a demand that would have | | | | increased minimum rates way above those provided in |
| outstripped the local needs and set up the much | | | | Europe generally. Employers turn away. Labour courts |
| needed export flow that would have guaranteed the | | | | can bankrupt most small businesses with hefty |
| welfare of the Spanish family for generations to come, | | | | penalties running into the thousands plus salary |
| The bad press which Spain has received over the last | | | | payments long after the employee has left. It will also |
| ten years however, has eroded the platforms on | | | | deny witnesses from within the employer´s direct |
| which these economic possibilities would have been | | | | influence and subject him or her to an intolerable, |
| launched. | | | | humiliating series of appearances and long journeys. |
| The total lack of political will demonstrated in the | | | | As a result, investment capital has started to leave the |
| economic figures, betray disguised import export | | | | country and the local self employed have restricted |
| deficits that have contributed to unattended, underlying | | | | their expansion within family members. The situation |
| inflation rates. This has made Spain too expensive for | | | | also contributes to the underground economy which in |
| the type of tourism on which it fed. It is also now | | | | most Latin Countries is much bigger than the surface |
| sending panic stricken British pensioners back to the | | | | one. This situation will remain and even prove |
| UK leaving the sale of their properties to the market | | | | dangerous when tackled, since it could throw an even |
| misfortunes. Taxation is also a nightmare as is also the | | | | greater number of people onto the unemployment |
| subjective, judicial system which has been classified as | | | | queues which are now stretching way round the |
| "not protective" and of poor quality by most of the | | | | blocks. Spain therefore needs an injection of genuine |
| European media. Whereas many basic taxes have | | | | values devoid of party political sectarian interests and |
| been abolished in the states of upper Europe, Spain | | | | prevalent corruption that has kept a handful of people |
| continues to multiply them with property purchase tax | | | | among the richest in the world at the expense of the |
| running at approximately 7% and social security | | | | rest. It also needs to re-establish institutional ethics to |
| contributions at a record breaking 45%. Wealth tax, | | | | render those bodies of any public use. Most are |
| vehicle transfer tax, and an incredible rental income tax | | | | membership conscious and find it difficult to relate to |
| for foreigners (denounced by the EEC) whether they | | | | complaining outsiders with the resulting loss of social |
| let their properties or not, begins to destabilise the | | | | balance mechanisms that make investing in Spain a |
| foreign, second home sectors which in the main | | | | non too digestible spectre. |