The Spanish Challenge: 04/04/2012

Hello loyal reader,

If I had to tell you the story of Spain over the last few hours, this is what I would say…


1. **LET’S GET SPAIN…!**. Money markets don’t trust Rajoy’s budget. The IBEX 35 has fallen through the floor this week and is currently below 7,800 points. At the same time, CDS spreads are up to 390 points, their highest level since November. A financial Station of the Crosses for Spain this Easter Week. ([Libre Mercado][aporespana])

2. **SPANISH BOND TROUBLE**. To top it all off, international financial media have taken just minutes to pick up on the terrible result of Spain’s latest bond auction this morning. ([Reuters][deuda])

3. **SOCIALIST REBELLION (1)**. Navarra and the Basque Country are straight out refusing to implement the tax amnesty Finance MInister Montoro announced last week. It seems quite incredible that the following quote has come from the mouth of a socialist politician: “*This is the last straw, what we need to do with tax evaders is prosecute them*”. ([El País][navarra])

4. **SOCIALIST REBELLION (2)**. Andalusia and Catalonia, the two most populated regions of Spain—and the two that spend most public money—are in turn rebelling because Rajoy has decided not to give them the money they are owed by the national government according to their Statutes of Autonomy. ([El País][andalucia])

5. **SOCIALIST REBELLION (3)**. More skilled when it comes to communication (*not difficult given last week’s PP press conference*), the Socialist Party has announced it will go on a media offensive today, with a series of 50 press conferences planned all over the country to attack Rajoy’s budget. The message? The budget is: “*lacking in solidarity, prejudicial to the regions and fraudulent with those who voted for the PP*”. ([ABC][50])

6. **RAJOY SUPPORTS ARENAS**. For some strange reason, after Arenas has lost for the fourth time in Andalusia, with the state of the Spanish economy being what it is, with all that waste and corruption, Mariano Rajoy has decided to continue supporting the PP leader in Andalusia. That’s how we renew Spanish politics! That’s how you get young Spaniards to participate more! ([ABC][rajoyarenas])

7. **MORE SPANIARDS IN GERMANY IN 2011**. Young Spaniards are more intelligent than that. They’re leaving the country. Patriotism is being able to feed your children, as they used to say. We read today that the number of Spanish residents in Germany rose 4.5% last year. ([El Mundo][alemania])

8. **BUMPY SPANISH ROADS** No, it’s not a metaphor, although it might well be given the state of the country. Spanish roads need some urgent maintenance—about €5.5 BILLION worth—to repair all the holes. Didn’t Zapatero spend exactly that amount on a public works plan to save the Spanish economy a couple of years ago? He did, but it appears we spent more time painting bicycle lanes than repairing roads. ([El Mundo][carreteras])

9. **THE CATALAN WEATHER MAP**. The Catalan government doesn’t even want to see Spain on its weather map any more. The regional Popular Party thinks it should display the entire kingdom as viewers find out whether or not it’s going to rain in Barcelona. That’s how politicians are spending their time with 5.4 million unemployed people becoming increasingly desperate all over the country. ([Libertad Digital][mapatiempo])

10. **ITALIA DOESN’T WANT ZAPATERO TV**. The land of Bunga Bunga and whoring former prime ministers has decided to stop broadcasting Spanish TV show “Physics & Chemistry” for being the incarnation of evil and of Zapaterian ideals regarding homosexuality and sex. “*Whilst the other characters have a dirty feel to them, gays are represented as pure and treated as little white bears*”. ([El Mundo][italia])

Thanks for reading.

Regards from Murcia,