Alvaro Herrero Palop.

LMCC

[DISCUSSION ESSAY - What is Spains most serious problem?]

Every country must always deal with a wide variety of problems and the Kingdom of Spain is not the exception for that rule. In fact, it appears that, metaphorically speaking, Spain is currently fighting in many different fronts, but as some people claim, with remarkable differences in the forces deployed in each one (Martin, 2012). Nothing extraordinary, as it would be seemingly reasonable to think that pinpointing the most urgent issue for the country to face, might be a difficult task indeed. And in spite of this, the present paper tries to compare and evaluate different opinions about which might be regarded as Spains most serious concern and thus, provide the reader with a wider vision on the subject. To start with, it seems quite generally accepted that unemployment is todays Spanish biggest trouble. In fact, according to the latest official barometer (CIS, 2012: 7), the vast majority of Spaniards apparently think that unemployment is the most worrisome problem. Of similar opinion is the Spanish Peoples Party (PP), currently leading the Cabinet. In November 2011, it pulled off a crushing victory in the general elections, after having portrayed unemployment as one of its first priority (Pericay, 2011). The main argument is that unemployment equals to lesser tax incomes and a growth of national debt, due to the increasing demand of social benefits; and that is something that may be lethal in Spains actual debt crisis context. Consequently, within its first 100 days, the Council of Ministers passed a major labor market reform in February 2012. The Peoples Party claims that the law ruling over laying-offs was too rigid and should become more flexible, in order not to deter possible employers from hiring workers (Spain practices, 2012). The EU (European Commission, 2012), the IMF (IMF, 2012) as well as many prestigious economic journals and some experts have given support to this reform and have flattered it for its audacity. Besides, it has been pointed out that the country has lost competitiveness and thus, a necessary internal devaluation, through decreasing salaries, is needed. On the one hand, the point that unemployment is Spains most serious problem appears quite convincing as more than 25% of the countrys population is unemployed and even over 50% of young work-seekers (The Secrets of the Spanish Banking System That 99% of Analysts Fail to Grasp, 2012). In fact, Spain has reached the highest rate of unemployment since democracy was reintroduced in the mid-70s (Govan, 2012). On the other hand, it could be reasonably argued as well that unemployment is not a problem in itself, but rather the consequence of failed economic politics. As it is widely known, the country experienced during the first years of the last decade a huge housing bubble. Fuelled by national and international banks and permitted, when not favoured, by local, regional and national administrations all over the country (The Secrets of the Spanish Banking System That 99% of Analysts Fail to Grasp, 2012), it finally exploded along with the U.S mortgage crisis in 2008 (BBC, 2012), producing millions of jobless people. Another seemingly agreed point of view would be the one that claims politicians to be the most compelling problem of Spanish society. Some evidence suggest that there is a

Alvaro Herrero Palop. LMCC

[DISCUSSION ESSAY - What is Spains most serious problem?]

general discontent with the state of matters and sees in actual politics and politicians (and their decisions) the main culprit of the failed economy and, therefore, of unemployment as well (2011-2012 Spanish protests, 2012). The idea that Spain is under a partocrazy has apparently permeated in the society, as last years massive protests seem to have demonstrated. In addition to that, the same above mentioned CIS barometer indicates that politics and politicians, in general, are ranked by citizens as the third most serious problem of the country (CIS, 2012: 7). Closely interrelated, the survey suggests the economic situation, (political) corruption and the banking system as other major concerns, along with issues related to basic rights home, education and health- (CIS, 2012: 7). In this respect, it could be claimed that the electorate is ultimately responsible for what the elected representatives (promise to) do. Nevertheless, one argument in favour of the politicians being responsible of Spains negative situation would be that in democracy, elected representatives are supposed to take actions and make decisions for the benefit of the majority. However, as many corruption scandals have shown, it is widely agreed that many politicians work rather for their personal or the partys benefit (Matlack, 2012). Even more, there is a general impression that they may get over with impunity. Finally, an increasing number of people would maintain that the present problematic situation has deeper roots than unemployment or politicians. The source of much of the global (and therefore, Spanish), socio-economic problems would be related to the actual form of capitalism or even to the capitalistic economy in itself (The Telegraph, 2011). In that sense, politics and politicians would be the ones to be blamed but just as the means through which powerful free-marketers impose their values and objectives to societies. However, the maximal benefits rule, proper to the system, has apparently brought Spain before a cliff. Not surprisingly, according to a recent study of Global Scan, large companies as banks, for example- are perceived as dangerous for democracy (PIPA & Globescan. 2012); a negative perception that the CIS barometer confirms, too (CIS, 2012: 7). Even more, a recent poll carried out by the prestigious Pew Group suggests that supporters of a free-market system have decreased dramatically among Spanish citizens since the crisis begun (Pew Group, 2012). Nevertheless, it could be argued that this negative perception of the capitalist democracy may be circumstantial and just a consequence of the pernicious effects that the crisis has had for many people in Western societies. However, it could be logically pointed out as well, that the crisis might have radically changed some peoples mind about the unquestionable efficiency and general benefits of a free-market system. Thus, there would be an increasing number of citizens who might believe the whole economic-political system to be the real cause of the problem rather than its potential consequences (unemployment and corruption) or the main actors through which it works (politicians and corporations). To sum up, there seem to be many different opinions about which might be Spains most serious problem; this essay has discussed only three possible viewpoints on the

Alvaro Herrero Palop. LMCC

[DISCUSSION ESSAY - What is Spains most serious problem?]

matter. Firstly, there are those who pinpoint the unemployment to be the countrys most worrisome issue. Secondly, there are others who believe the politicians to be the most urgent question to solve. And finally, there are some who feel that the whole freemarket system is indeed Spains acutest problem. Considering all these points, it might be logical to suggest the country to commonly re-think its foundations in order to look for a possible consensus about its problems as well as about an attainable shared solution. Bibliography 2011-2012 Spanish protests. 2012. Wikipedia. 10.12.12. In: http://en.wikipedia.org/wiki/2011%E2%80%932012_Spanish_protests Date of access 20.12.12 BBC. 2012. Eurozone crisis explained: Spain. 28.09.12. In: http://www.bbc.co.uk/news/business-17549970 Date of access: 15.12.12 CIS (Centro de Investigaciones Sociolgicas). 2012. Barmetro de noviembre. Avance de resultados. N 2966. In: datos.cis.es/webFtp/fileGetter.jsp?dwld=Es2966mar_A.pdf Date of access 14.12.12 European Commission. 2012. Europe 2020 in Spain. 12.07.12. In: http://ec.europa.eu/europe2020/europe-2020-in-your-country/espana/index_en.htm Date of access: 15.12.12 Govan, F. 2012. Spain jobs woes deepen as unemployment rate hits 25pc. The Telegraph. 26.10.12. In: http://www.telegraph.co.uk/finance/financialcrisis/9635107/Spain-jobs-woes-deepenas-unemployment-rate-hits-25pc.html Date of access 20.12.12 International Monetary Fund (IMF). 2012. Spain Needs to Deliver on Reforms to Stabilize Economy. 27.07.12 In: http://www.imf.org/external/pubs/ft/survey/so/2012/car072712a.htm Date of access: 15.12.12 Martn, J. 2012. Spain: bail out workers, not banks. In Defense of Marxism.14.06.12 In: http://www.marxist.com/spain-bail-out-working-people.htm Date of access 20.12.12 Matlack, C. 2012. Spain's Corruption Crisis Reaches the Palace. 17.02.12. In: http://www.businessweek.com/articles/2012-02-17/spains-corruption-crisis-reaches-thepalace. 20.12.12 Pericay Coll, G. 2011. The PP wins practically all over Spain with the exception of Catalonia and the Basque Country. Catalan News Agency. 21.11.11. In: http://www.catalannewsagency.com/news/politics/pp-wins-practically-all-over-spainexception-catalonia-and-basque-country Date of access 20.12.12

Alvaro Herrero Palop. LMCC

[DISCUSSION ESSAY - What is Spains most serious problem?]

Pew Group. 2012. Views of Free Market. In http://www.pewglobal.org/database/?indicator=18&group=3&response=Disagree Date of access 15.12.12 PIPA & Globescan. 2012. Companies Seen as Having Too Much Influence on Government. In http://www.globescan.com/news_archives/pipa_market.html Date of access 15.12.12 Spain practices. 2012. The Economist (printed edition) 18.02.12. Retrieved in http://www.economist.com/node/21547831 Date of access: 15.12.12 The Secrets of the Spanish Banking System That 99% of Analysts Fail to Grasp. 2012. Gains, Pains & Capital. A Phoenix Capital Research Publication. 29.04.12. In http://gainspainscapital.com/2012/04/29/the-dirty-secrets-of-spains-banking-systemthat-99-of-analysts-fail-to-grasp/ Date of access 20.12.12 The Telegraph. 2011. Roger Bootle anti-capitalist movement will grow. 18.10.11. In http://www.telegraph.co.uk/finance/financevideo/8834035/Roger-Bootle-anti-capitalistmovement-will-grow.html Date of access 21.12.12