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Pressure builds on Sánchez as third Spanish election looms

Felipe González, right, a respected former four-term prime minister, has called on Pedro Sánchez, the current PSOE leader, to allow a conservative minority government. (EFE)

Felipe González was just 41 years old when he became, in the view of many Spaniards, the most consequential prime minister to date in post-Franco Spain.galiciabasqueSpain_Flag_Icon

Across a span of 14 years in power, González, the leader of the center-left Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party), won four consecutive elections, normalized the rule of law and the traditions of democratic participation in Spain, brought the country into what was then the European Economic Community, the forerunner of today’s European Union, and shepherded Spain into NATO as a firm member of the transatlantic military and security alliance.

Today, while Spaniards take for granted many of those accomplishments as pillars of the Spanish state, González is also now remembered for the levels of corruption that sank his final government and a botched attempt to combat armed Basque nationalists.

But he’s still the first among Spain’s elder statesmen, in many ways as influential as the former king, Juan Carlos I, who abdicated in 2014 in favor of his son Felipe VI. In truth, the two are more responsible than anyone for Spain’s vibrant democracy today.

Third election a Christmas miracle?

As his country enters its 10th month without a government, voters may worry that Spanish democracy has become a bit too vibrant in recent years, as a strong two-party political system has crumbled into a four-party state with myriad regionalist parties from all corners of Spain, its two-party system dissolved under the penumbra of depression-level GDP contraction and unemployment.

That’s why, after two elections, the first in December 2015 and the second in June 2016, no party can quite cobble together the necessary majority to form a government. If Spain’s party leaders cannot unlock a breakthrough by the end of October, the country will head to the polls for the third time in 13 months, possibly even on Christmas Day 2016.

González, who has doled out criticism for all of Spain’s political leaders, is one of the few PSOE figures publicly urging his party and its young leader, Pedro Sánchez, to concede its fight to deny another government under conservative prime minister Mariano Rajoy. In his view, Spain would suffer greater damage from a third general election in 13 months — as polls show that yet another snap election would result in essentially the same deadlock as the last two. In a country where turnout of 75% or more isn’t uncommon, turnout dropped from 69.7% in December to just 65.7% in June, and it could fall even lower, to 63% or worse, with another snap vote. Generally speaking, Spanish observers believe that will boost the PP, at the expense of the PSOE and Podemos, the leftist, anti-austerity movement that formed in 2014 out of the indignados movement of Spain’s masses of unemployed workers.

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RELATED: PSOE’s incentives point to PP-Ciudadanos minority government in Spain

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Another election in Spain would come as both Germany and France face national elections in 2017 with rising eurosceptic sentiment. It would come weeks after a make-or-break referendum on constitutional reform that’s seen as a plebiscite on Italian prime minister Matteo Renzi, and as the United Kingdom, under its new prime minister Theresa May, maneuvers to leave the European Union after its blockbuster June 2016 ‘Brexit’ vote. It could fall just days after the United States might elect businessman and reality television star Donald Trump as its next president.

So the last thing Spain’s leaders (and European and American leaders) want is another inconclusive vote and prolonged uncertainty that could threaten the slight economic growth that Spain’s generated in 2015 and 2016 and that has left the country without a government to implement a budget for the next year or provide leadership in ongoing post-Brexit debates over the European Union’s future.

Rajoy fails to win investiture vote

Prime minister Mariano Rajoy has continued to lead a caretaker government since last December. (Facebook)
Prime minister Mariano Rajoy has continued to lead a caretaker government since last December. (Facebook)

The latest despair comes after another failed attempt by Rajoy to retain power. Although his conservative Partido Popular (PP, the People’s Party) won the greatest number of seats in the most recent June election (indeed, a 14-seat increase from the December election), he has twice failed to win two confidence votes since the end of August, with a majority of the Chamber of Deputies (Congreso de los Diputados), the lower house of the Spanish parliament, blocking Rajoy’s investiture. Continue reading Pressure builds on Sánchez as third Spanish election looms

PSOE’s incentives point to PP-Ciudadanos minority government in Spain

Pedro Sánchez has led the PSOE to a better-than-expected result, but it leaves Spain no closer to a clear governing majority. (Facebook)
Pedro Sánchez has led the PSOE to a better-than-expected result, but it leaves Spain no closer to a clear governing majority. (Facebook)

Voting under the penumbra of an ongoing political crisis in the United Kingdom following last Thursday’s referendum, in which a bare majority of British voters chose to leave the European Union, Spanish voters in Sunday’s general election — the second in seven months — fell back on established parties instead of more radical newcomers.Spain_Flag_Icon

Despite polls (and even exit polls) that predicted the rise of Unidos Podemos, a joint ticket of Spain’s far-left communists and Podemos, the newer anti-austerity movement, the ticket won the same number of seats in the lower house of Spain’s parliament, the 350-member Congreso de los Diputados (Congress of Deputies), than it had after the December general election.

Forecasts that Unidos Podemos would overtake the center-left Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party) proved wrong. The PSOE, under the leadership of Pedro Sánchez, remains the largest leftist force in Spanish politics.


Unfortunately for Sánchez, the PSOE fell further behind the governing center-right Partido Popular (PP, the People’s Party) of prime minister Mariano Rajoy, which won 137 seats — a 14-seat increase since the December 2015 elections. Those gains came mostly as a result of record-low turnout and a subtle migration back to Rajoy’s party from the upstart, liberal Ciudadanos, which lost eight seats in last Sunday’s voting.

spain 16 deputies (1)

So what next? In an election where voters largely returned the same verdict, Spain’s political class is now looking at another round of coalition talks as a country with a traditional two-party system now copes with four major parties.

At the heart of these talks, however, is the PSOE, which is now positioned as the leading swing vote between Spain’s conservatives and Spain’s hard left. No matter what comes next for Spain, the PSOE will almost certainly determine the outcome.

So as Spain’s political leaders get down to the business of coalition talks in the days and weeks to come, the most important factor to keep in mind are the PSOE’s political incentives (and, to a lesser degree, Sánchez’s incentive to remain PSOE leader in the hopes of winning a future election). Continue reading PSOE’s incentives point to PP-Ciudadanos minority government in Spain

Spain heads toward fresh elections on June 26

Pedro Sánchez, the leader of the Spanish Socialist Workers’ Party, could fall if his party drops to third place in June. (Facebook)

Shortly after the December general election, I wrote that Spain faced three possible choices — a German-style grand coalition, a Portuguese-style ‘coalition of the left’ or a Greek-style stalemate and fresh elections. Spain_Flag_Icon

Spain chose the Greek option.

Five months after a national election ripped apart Spain’s decades-long two-party system, the failure of the country’s four major parties to reach a coalition agreement means that Spain’s voters will once again go to the polls on June 26 for a fresh vote, after a deadline ran out on midnight Tuesday to find a viable government.

Notably, the rerun of Spain’s national elections will fall just three days after the United Kingdom votes on whether to leave the European Union, a critical vote for the entire continent.

spain deputies

The problem is that, with talks stalled for any conceivable governing majority, the Spanish electorate seems set to repeat results similar to last December’s election. For now, markets are not unduly spooked by the political impasse in Madrid, but continued uncertainty through the second half of 2016 could prove different if no clear government emerges from the new elections and, presumably, a new round of coalition talks brokered by Spain’s young new king, Felipe VI.

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RELATED: Three choices for new fractured political landscape

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So who are the four major parties and how do they stand heading into the June vote? Continue reading Spain heads toward fresh elections on June 26

Three choices for new, fractured Spanish political landscape

Pablo Iglesias, a founder and leading spokesperson for the Podemos movement, has cause to be delighted with Sunday's result. (Twitter)
Pablo Iglesias, a founder and leading spokesperson for the Podemos movement, has cause to be delighted with Sunday’s result. (Twitter)

As predicted, Spain’s messy general election resulted in no clear winner, and none of its two largest parties could claim a majority in the lower house of Spain’s parliament.Spain_Flag_Icon

What’s more, though two upstart parties upended the political status quo that’s existed for nearly 40 years in Spain, neither did so well that they can form a government — or even serve as a kingmaker for one of the two established parties.


While the conservative Partido Popular (PP, the People’s Party) emerged with the largest share of the vote, prime minister Mariano Rajoy has plenty of reason to despair. Much of the party’s support comes from older voters in the Spanish countryside, and the PP benefited from an electoral system that delivers slightly more seats to parties with support outside Spain’s urban centers. Nevertheless, he has lost his absolute majority, dropped 64 seats and, worst of all for Rajoy, there’s no clear or easy path to a governing majority. Though Spain’s economy has stabilized under the past four years of PP rule, unemployment remains staggeringly high (21.2%). The party’s leader since 2004, Rajoy might ultimately be pushed aside during coalition talks for a younger or more charismatic leader, like deputy prime minister Soraya Sáenz de Santamaría.

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RELATED: Spain readies for historic four-way election on December 20

RELATED: Can Felipe VI do for federalism
what Juan Carlos did for democracy?

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Meanwhile, the center-left Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party) suffered its worst defeat since the transition to democracy in the late 1970s. Its new leader, Pedro Sánchez, a moderate economist, simply could not convince voters to look beyond long-simmering corruption scandals (which, by the way, also plague Rajoy’s party) and the record of the prior PSOE government, which took the first steps toward the path of austerity measures in the aftermath of the 2009-10 eurozone debt crisis.

Indeed, the PSOE just barely outpolled Podemos, an anti-austerity alternative that burst onto the Spanish political scene in 2014, embracing the anti-establishment protests of the ‘indignados’ movement. Despite leading polls earlier this year, Podemos crashed as fears grew that it would cause the kind of economic pandemonium that plagued Greece after the election of the far-left SYRIZA this year. Its leading spokesperson, Pablo Iglesias, began to moderate his movement’s rhetoric, and rallied to a strong third-place finish.

The center-right liberal Ciudadanos (‘C’s,’ Citizens), a federalist, economically liberal party founded in Catalonia in 2007, made the leap from regional politics to national politics, but its leader Albert Rivera must be disappointed that it failed to steal more voters from Rajoy.

With another handful of seats going to various pro-independence Catalan parties, as well as Basque and Galician regional parties, the net result is that no one has enough seats in the 350-member Congreso de los Diputados (Congress of Deputies), the lower house of Spain’s legislature, the Cortes Generales (General Courts).

spain deputies

Notably, Rajoy maintained the PP’s majority, however reduced, in the far less powerful upper house, the Senado (Senate), which can be overruled on most matters (i.e., not ‘organic laws’ that deal with constitutional matters, civil rights and federalism) by majority vote of the Chamber of Deputies. Voters elected 208 senators on Sunday as well (an additional 58 senators are appointed by regional assemblies).

Two sets of statistics are worth considering.

First, the traditional major parties (the PP and PSOE) won just 50.7% of the vote in aggregate, compared to 83.8% in the 2008 election and 73.4% in the 2011 election. Obviously, that means Spain is entering a new era where coalition politics are more important. That’s not entirely unprecedented — when José María Aznar won 156 seats after the 1996 elections, he had to work with Catalan, Basque and Canarian nationalists to form a stable government. But the success of Podemos and Ciudadanos has transformed Spain’s politics from a two-party matter to a multiparty affair.

Secondly, among the four major parties to emerge from the 2015 election, it’s staggering just how evenly divided the Spanish left and right are. Together, the PP and Ciudadanos won 42.65% of the vote and the PSOE and Podemos won 42.67%. Spain’s electorate, in the broadest sense, delivered neither a mandate to a sharp left turn or a sharp right turn.

What Spain now faces is a difficult choice of among three different paths, all of which carry their own risks and challenges. Spain’s new young king, Felipe VI, will also take a more hands-on role in the coalition formation process than his father, Juan Carlos I, ever did. The good news for Spain is that the three options each mirror paths taken by three of its fellow European Union member-states in the last three years:

  • Germany 2013: a ‘grand coalition’ between the two established parties;
  • Portugal 2015: a fragile coalition government that brings together all of the parties and movements of the left; and
  • Greece 2012: deadlocked coalition talks lead to fresh elections.

To the extent that Spain is entering a new coalition-based era of its parliamentary politics, a reshaped Spanish political landscape might transcend 20th century fractures and the transition to democracy that’s dominated Spanish political life for a half-century.

Continue reading Three choices for new, fractured Spanish political landscape

Spain readies for historic, four-way election on December 20

Spain's new young king, Felipe VI, may ultimately shape his country's new country from the Palacio Real if the unprecedented four-way race leaves no party with a majority after December 20.
Spain’s new young king, Felipe VI, may ultimately shape his country’s future from the Palacio Real if the unprecedented four-way race leaves no party with a majority after December 20.

Five days before the Christmas holiday, Spanish voters will go to the polls to choose a new government in an election that’s being hailed as the country’s most important since 1982.Spain_Flag_Icon

Indeed, voter turnout may well exceed the 80% levels not seen since 1982, when Spain had only just emerged from its Francoist dictatorship and was four years away from joining the European Economic Community, the predecessor to today’s European Union. Moreover, it will also be the first general election to take place under Felipe VI, whose father Juan Carlos I abdicated in June 2014 after guiding the country’s transition to democracy in the mid-1970s.

But what makes the December 20 election so unique is that economic crisis has shattered Spain’s stable two-party electoral tradition, leaving a four-way free-for-all that could force unwieldy coalitions or a minority government at a time when the country has only just started its economic recovery. Distrust in both major parties, moreover, has opened the way for a popular far-left movement at the national level and greater discord at the regional level, most notably in Catalonia, where support for the independence movement is growing. No matter who wins power in the eurozone’s fourth-largest economy, the next Spanish government will face difficult decisions about GDP growth, lingering unemployment, and federalism and possible constitutional change.

For decades, Spanish elections were essentially, at the national level, a fight between the conservative Partido Popular (PP, the People’s Party) and the center-left Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party). In the most recent 2011 election, the PP won 186 seats in the 350-member Congreso de los Diputados (Congress of Deputies), the Spanish parliament’s lower house, while the PSOE won 110 seats.

Both parties can point to massive successes over the past three decades. Under longtime PSOE prime minister Felipe González, Spain consolidated its liberal democracy and benefited greatly from closer economic and financial ties to Europe, while Barcelona’s emergence as the host of the 1992 Summer Olympics catapulted it into a world-class city. Under conservative prime minister José María Aznar, Spain joined the core of western European countries as a founding member of the eurozone in 2002 and developed widening security ties with the United States. When the PSOE returned to power in 2004 under José Luis Rodríguez Zapatero, the government enacted same-sex marriage in 2005 and later negotiated a peaceful ceasefire with the paramilitary Basque nationalist group Euskadi Ta Askatasuna (ETA).

The pain in Spain

Widespread anti-austerity protests, spearheaded by the 'indignados' movements mobilized even before the previous elections in 2011. (El País / Carlos Rosillo)
Widespread anti-austerity protests, spearheaded by the ‘indignados’ movements mobilized even before the previous elections in 2011. (El País / Carlos Rosillo)

But the global financial crisis of 2008-09 and subsequent eurozone crisis of 2010 knocked Spain off its pedestal.

Not unlike Florida, Nevada and parts of California in the United States, property values in Spain fell as rapidly as they once climbed, and an economy driven by construction and easy credit sputtered to near-depression levels of contraction. Despite running a more parsimonious fiscal policy in the 2000s than even Germany, Zapatero’s government soon found its expenses far exceeding revenues, and his government engaged in a series of tax increases and spending cuts.

The Spanish electorate ousted Zapatero in December 2011, ushering the People’s Party back to power under Mariano Rajoy, whose main goal was to prevent Spain from needing to seek an emergency bailout. Despite some scares over the Spanish banking system in 2012, Rajoy succeeded in keeping Spain bailout-free, but at the cost of ever greater spending cuts and tax hikes. The Rajoy government’s tough fiscal medicine, to some degree, has worked. Yields on Spanish 10-year debt have steadily fallen from a high of over 7.2% in July 2012 to less than 1.8% today. For a country without economic expansion since 2008, the Spanish economy returned to fragile growth in 2014, and it maintained growth throughout 2015 — notching 1% growth in the second quarter of this year and 0.8% in the third.

But voters are not enthusiastic about the prospects of reelecting Rajoy, a leader who never quite managed to win over Spanish hearts. Spain’s unemployment rate today is still 21.2%, a drop from the record-high 26.9% level recorded in early 2013. But that’s still a far higher jobless rate than anywhere else in the European Union (with the exception of Greece).

In the 2008 election, before the bottom fell out of the Spanish economy, the two major parties together won 83.8% of the vote. By 2011, that percentage fell to 73.4%. If polls are correct, that percentage could fall below 50% on Sunday, as both the PP and the PSOE struggle against the surging popularity of the anti-austerity Podemos (‘We can’) on the left and the liberal, federalist Ciudadanos (C’s, Citizens) on the right.

If the election were held today, the PP would win around 110 seats, the PSOE around  90, and Podemos and Ciudadanos would each win around 60, leaving none of them with a clear majority. The uncertainty of the four-way race has both energized the electorate (in  a manner reminiscent to those first early elections in the post-dictatorship era) and enhanced the chances of post-election uncertainty that both Greece and Portugal have endured this year.  Continue reading Spain readies for historic, four-way election on December 20

Nine European women who could join Hillary Clinton at the top


Part of the undeniable appeal of Hillary Rodham Clinton’s presidential campaign is her push to become the first woman to lead the United States, enhanced by the fact that she aims to succeed the first African-American president.USflag

But, if elected, Clinton will be far from the only powerful woman on the world stage.

If she wins the November 2016 presidential race, she’ll join a list of world leaders that includes German president Angela Merkel, Liberian president Ellen Johnson Sirleaf, Lithuanian president Dalia Grybauskaite, Brazilian president Dilma Rousseff, Danish prime minister Helle Thorning-Schmidt and Chilean president Michelle Bachelet.

What’s more, there’s never been a better moment for women leading their countries. Assuming that Clinton wins the presidency in 2016 and serves two terms, it’s not inconceivable that she’d lead the United States at a time of ‘peak’ female leadership. But nowhere is that more true than in Europe. In fact, it’s not inconceivable that each of the six largest member-states of the European Union could have women in charge during a potential Clinton administration.

Here’s who they are — and how they might rise to power. Continue reading Nine European women who could join Hillary Clinton at the top

Socialists thrive in Andalusian regional elections


After last Saturday’s election, it’s no exaggeration to say that Andalusia’s regional president Susana Díaz might be the most popular politician in Spain.Spain_Flag_Iconandalucia flag

Díaz, who heads the Partido Socialista Obrero Español (PSOE, Spanish Socialist Worker’s Party) in Andalusia, the largest region — or ‘autonomous community’ — in Spain, won her first term as regional president since taking power in 2013 upon the abrupt resignation of her predecessor, José Antonio Griñán. Both Griñán and Manuel Chaves, who governed the region between 1990 and 2009, are under investigation for their connection to a wide-ranging ‘ERE’ corruption scandal involving the diversion of funds designated to assist laid-off workers in Andalusia, where the unemployment rate remains stubbornly high at 34%, the worst in Spain, where joblessness also remains stubbornly high, despite its economy’s tepid 1.4% growth last year — the first year of GDP expansion since 2008.

Those two concerns, jobs and corruption, dominated the campaign in Andalusia, the sprawling southern region of Spain.

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RELATED: In Andalusia, Díaz takes office with staggeringly high unemployment, economic woes (September 2013)

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Though Andalusia has been a Socialist stronghold since the return of democracy in the late 1970s, disillusionment with widespread corruption and with Spain’s deteriorating economy gave the center-right Partido Popular (PP, People’s Party) of prime minister Mariano Rajoy its first Andalusian electoral victory in March 2012. Despite the Socialists’ losses, the party remained in power by forming a coalition with a smaller left-wing coalition of parties, Izquierda Unida (IU, United Left).

The Socialist-IU coalition continued under Díaz, who at age 40 is pregnant with her first child and who still marks a sharp contrast, generational and otherwise, with the region’s previous Socialist leaders. Díaz, a sharp-tongued populist who declined to contest the party’s national leadership, has also declined (so far) to challenge the PSOE’s leader Pedro Sánchez to become the prime ministerial nominee in November’s general elections.

andalusia2015 andalusia parliament

Her victory in Andalusia’s March 22 snap election, called in January after Díaz wearied of the IU’s demands as junior coalition partner, will give hope to Sánchez and the national PSOE leadership that it can thrive throughout the 2015 electoral gauntlet.

An additional 13 regions will hold elections on May 31, including Madrid, the Valencian Community and Castile and León, the third, fourth and sixth most populous regions in Spain, respectively. Rajoy’s PP and its allies are defending governments in 11 of the 13 regions, including each of Madrid, Valencia and Castile and León. The party’s 17-seat loss in Andalucia, therefore, is an alarming sign for the ruling party.  Continue reading Socialists thrive in Andalusian regional elections

New PSOE leader Sánchez faces uphill struggle to unite Spanish left


He’s a disarmingly handsome economics professor, and he’s the first major Spanish party leader who grew up chiefly in the post-Franco era and in the era of Spanish democracy.Spain_Flag_Icon

But Pedro Sánchez, who leapfrogged the more well-known Eduardo Madina to become the leader of Spain’s Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party) earlier this month, and who will assume the leadership later this week, will have his work cut out for him before elections that will take place within the next 17 months, with the party’s traditional voting base increasingly supporting both new and established alternatives on the Spanish left. 

Sánchez (pictured above), just 42 years old, has only been a member of the Congreso de los Diputados (Congress of Deputies), the lower house of the Spanish parliament, the Cortes Generales, from 2009 to 2011 and  since January 2013, representing Madrid, where he served as a city councillor for the preceding five years.

Sánchez won the PSOE’s first direct contest to elect the party’s general secretary in a three-way race, with 48.7% of all votes against just 36.1% for Madina and 15.1% for the more left-wing José Antonio Pérez Tapias.

Though Madina, at age 38, is even younger than Sánchez, he’s been a member of the Congress of Deputies since 2004 and the secretary-general of the PSOE’s congressional caucus since 2009. A Basque federalist, he was perceived as the frontrunner in the race, especially after taking a republican stand in the aftermath of Juan Carlos I’s abdication from the throne. But the favorite to lead the PSOE, Andalusia’s 39-year-old regional president, Susana Díaz, endorsed Sánchez instead, as did many former officials from the administration of former prime minister José Luis Rodríguez Zapatero, including former public works and transportation minister José Blanco.

That effectively lifted the more unknown Sánchez, who holds a doctorate in economics, above Madina, who once lost part of his left leg in a Basque nationalist bomb blast.

On his election, Sánchez declared the ‘beginning of the end of Rajoy,’  challenging the unpopular center-right government of prime minister Mariano Rajoy, which has presided over the worst of Spain’s recent economic crisis.

Not so fast.  Continue reading New PSOE leader Sánchez faces uphill struggle to unite Spanish left

With Spanish left reeling, Rubalcaba steps down as PSOE leader


The European parliamentary elections have claimed their first national leader in Alfredo Pérez Rubalcaba, the general secretary of the Partido Socialista Obrero Español (PSOE, Spanish Socialist Workers’ Party), Spain’s traditional center-left party.Spain_Flag_Icon

In Sunday’s elections, Spanish voters elected 54 members of the European Parliament. The ruling Partido Popular (the PP, or the People’s Party) of prime minister Mariano Rajoy won the largest share of the vote, around 26%, and the largest number of seats, 16.

The PSOE placed second with just 23% and 14 seats — that’s a loss of nine seats in the European Parliament.


Rubalcaba, taking the blame for his party’s losses, announced he would step down from the leadership, calling a meeting on July 19-20 to select a new general secretary of Spain’s largest center-left party:

“We have not managed to regain the trust of the citizens,” Mr Rubalcaba told a press conference in Madrid on Monday, adding that he would not stand for re-election at an extraordinary party conference in July. “We have to take political responsibility for the bad results, and this decision is absolutely mine,” he added.

There’s no guarantee that the next PSOE leader will be able to unite the Spanish left, which has fractured in the face of the economic crisis in the past five years.

The PSOE’s performance was hardly much worse than Rajoy’s party, which lost eight seats. Taken together, the two major Spanish parties won around 49% of the vote. That’s down from nearly 84% in the 2008 Spanish general election, 80% in the previous 2009 European elections and 73% in the 2011 general election.

So while the greater pressure fell on Rubalcaba and the PSOE, the results are hardly heartening for Rajoy. Continue reading With Spanish left reeling, Rubalcaba steps down as PSOE leader

In Andalusia, Díaz takes office with staggeringly high unemployment, economic woes


Andalusia, the most populous of Spain’s ‘autonomous communities,’ has one of the most distinctive cultures in Europe — it’s the home of flamenco musical tradition, the Moorish architecture of Córdoba and Granada, the Baroque splendor of Seville and the birthplace of sherry.andalucia flagSpain_Flag_Icon

For all of its cultural riches, however, Andalusia has recently distinguished itself as one of the most economically challenged regions in Europe.  Last year, it had the second-highest unemployment rate (34.6%) in the entire European Union, with a youth unemployment rate of over 60%.  When you think of the European periphery that’s been choked off from economic growth by the eurozone sovereign debt crisis and the European Central Bank’s monetary policy, you should think of Andalusia.

Enter Susana Díaz, who took over last week as Andalusia’s new president (and its first female president), following the resignation of José Antonio Griñán, who had served as the Andalusian president since April 2009 and led the Partido Socialista Obrero Español (PSOE, Spanish Socialist Worker’s Party) to a nearly historic defeat in what’s long been a heartland of the Spanish left, stemming from the stridently leftist response to the latifundio culture that dominated economic life in the region through the early 20th century.  The lack of political competition in the region has done Andalusian residents few favors, however, and Socialist bosses control the region’s government as surely as the caciques of the old aristocracy.

Díaz marks somewhat of a break from the immediate past (up to a point) — from Griñán, and also from his predecessor, Manuel Chaves, who served as the Andalusian president from 1990 until 2009.  That’s good news in light of ongoing investigations into corrupt practices of past governments because past Socialist officials, including potentially Chaves and Griñán, are implicated in the fraudulent diversion of funds from ERE, a publicly subsidized fund that pays severance to laid-off workers.

Griñán announced he wouldn’t run for reelection as leader of the Andalusian Socialists earlier this year in part to shield the Socialist government from being further soiled by the ‘EREgate’ investigations.  Díaz won the leadership easily in July as Griñán’s preferred candidate, despite the promise of a robust party primary, and Spain’s national Socialist leader Alfredo Pérez Rubalcaba worked to hasten the transition to Díaz, given the ethics cloud hanging over Griñán and Chaves.  It’s become somewhat standard practice for Andalusian Socialist presidents to stand down between elections, however, allowing new leaders the benefits of incumbency in advance of the next election.  For Díaz, that won’t likely come until 2016.

Though it’s not yet clear whether Díaz marks a true rupture from the old Socialist bosses that have controlled the Andalusian government for three decades, she has a long and difficult road of governance ahead.

Somewhat promisingly, Díaz has already replaced three of the eight leading ministers in the Andalusian government, including the top economic officials from the Chaves-Griñán era and appointed her own economic team — headed by Andalusia’s new economics commissioner José Sánchez Maldonado, a former professor of public finances and a Socialist heavyweight who hopes to emphasize employment, growth and social justice.

But just ask Sicilian president Rosario Crocetta how much leverage he has had in repairing another struggling peripheral Mediterranean economy, even with all the anti-corruption, pro-growth, pro-employment sentiment he can muster.  Frankly, Díaz holds few of the political and economic levers that would allow her to radically change Andalusia’s destiny, which will be determined to a larger degree in Berlin, Brussels and Madrid than in Seville.  Last autumn, the region requested an additional €1 billion to meet its financial obligations, and the government has long been suspected of hiding the true extent of its debt obligations from federal officials.

Continue reading In Andalusia, Díaz takes office with staggeringly high unemployment, economic woes