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© Il Blog di Giacomo Palumbo - Home ufficiale

venerdì 17 dicembre 2010

A new government serves to Spain to recover itself.


Spain is facing a critical economic situation. Together with Portugal, is at the center of the financial turmoil in Europe. Sovereign debt issue to investors in Madrid, the highest rate of default risk since the entry in the eurozone. In the social sphere, conditions are distressing. The rate of unemployment is now over 20% and youth unemployment is over 43%.
But not only the financial markets to have doubts on the Spanish economy. The European Commission has repeatedly stated his concerns openly against the current government's ability to react and take credible measures to address the economic situation.
What is the problem of Spain? How is it possible that in a few years, from the "economic miracle" Europe is my country has become the "economic problem" of Europe? What happened to that economy growing, year after year, at a rate of 3% even when Germany, France and Italy marked a growth rate close to zero? Today, however, is the only one of five major European economies still have a negative growth.
All these questions cause me great distress and causing me deep concern for the present and the future of my country. Just six years ago, Spain was created six new jobs in 10 eurozone, government accounts were in surplus, its public debt and its decreased rapidly expanding multinational in Europe, Latin America and the United States .
My answer to each question about Spain is clear: it is suffering the most serious political crisis of its recent history. Its economic woes and lack of confidence in Spain are nothing more than the result of the lack of credibility of the government. The high price you are paying today's Spanish is what happens when politicians refuse to admit their mistakes.
The roots of the crisis in Spain is based on political decisions taken in 2004 when it was decided to abandon the process of modernization that the Spanish company had started more than 30 years ago. At that time, the Spaniards decided by consensus to consolidate their democracy and their institutions after nearly 40 years of dictatorship. The next step was to join the European Union, and later the euro, and converge economically and socially with the most prosperous countries in Europe.
Then, in 2004 changed the direction of Madrid. The government rejected the agreement represented by the Constitution of 1978 and created a break in the composition of the Spanish State. The different areas of the country were pitted against each other made. The effect was to remove much of what unites us as Spanish and transform Spain into a country where it is very difficult to govern.
In the economic sphere, after which Spain adopted the euro and the devaluation of the currency ceased to be an option, the government abandoned its commitment to maintain a stable state budget and leave the ongoing process of reforms essential to be competitive in global markets. The errors can be identified in the economic arbitrary intervention of government in economic life of the country, with a blatant disregard for the rules of the game, even European ones. Spain has also experienced unprecedented growth in public spending and hikes in taxes, at all levels.
The current position of Spain in the international arena reflects the declining weight in the world. The government has neglected its responsibilities and in fact has failed to defend its national interests abroad. Only a new government can recover its credibility, and do so necessarily requires the general election.
A new government could appeal to the Spanish to carry out a major project of national recovery, reconstruction and reform of the nation. To this end, there are no miracles or shortcuts: none have ever been in the past and there will not be now either. With a new draft national policy and the implementation of appropriate policy measures, Spain will recover its credibility and international respect and the Spanishes will be able to regain confidence in themselves and in their country.
An essential part of Spanish political transformation, however, must be to immediately recognize that the state must limit its economic and social role, and open new areas of freedom and dynamism to society and the private entrepreneurs. Spain need to implement radical reforms in its administrative structure, including the eradication of bureaucratic structures and public and rationalization of public expenditure. Madrid still absolutely can not postpone the reform of its welfare state but, rather, must start now to rebuild the conditions for a vigorous society that is open to all.
Spain is in fact more than capable of becoming again a dynamic and resourceful country, a state that creates jobs and opportunities. But before all this has to take hard work to undo six years of political deceit. The Spanish can not wait any longer.

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