SPAIN: Smooth Sailing on Economic – but not Political – Front

By Tito Drago Reprint | | Print |

Tito Drago

MADRID, May 13 1997 (IPS) - The smooth sailing of Spain’s economy, which is doing better, perhaps, than it has in three decades, stands in sharp contrast to the stormy political front.

The ministries of economy and finance of the European Union’s 15 members enthusiastically approved Monday Spain’s economic plan for becoming part of the European Monetary Union (EMU).

If Spain complies with the plan, it will be among the first group of countries to form the EMU, and will be able to join the system of the single European currency when it is implemented two years from now.

Spain has met the main requisite for becoming part of the EMU: reducing inflation to within one and a half points of the annual average of the 15 members. Spain’s annual average up to March was 2.2 percent, while the EU figure was 0.96 percent.

Other indicators also boost the country’s chances of forming part of the first stage of the EMU: its public deficit does not exceed three percent of the Gross Domestic Product, while the public debt has dropped to the level demanded by the EU.

The positive macroeconomic statistics are added to the social accord signed by the trade unions and business associations last month, as well as to the steady – although insufficient – drop in unemployment.

But the economic achievements of the centre-right government of Jose Maria Aznar – which his predecessor, Felipe Gonzalez of the socialist workers’ party, claims as his own – make the tension characterising the current political scenario even more evident.

An accusation by Gonzalez against Vice-President Francisco Alvarez Cascos has put the government on the defensive, and threatens to lead to a crisis between the ruling Popular Party and its main allies in parliament, the moderate nationalists of Catalonia.

Gonzalez accused Alvarez Cascos of having met in late 1994 with former police officers Jose Amedo and Michel Dominguez, who were sentenced to 108 years in prison for crimes committed during the “dirty war” waged against the Basque separatist movement ETA in the early years of Gonzalez’ socialist government (1983-96).

The former head of the socialist government alleged that the vice-president had offered Amedo a pardon if the Popular Party won the elections and the former police officer agreed to testify against Gonzalez, implicating him in the dirty war.

Gonzalez failed to provide evidence, and Alvarez Cascos rebutted the accusation, denying that he had met with Amedo or offered him a pardon, although he did admit to having met with Amedo’s attorney. The former police officer also denied that he was offered compensation for testifying against the socialist leader.

Similar mud-slinging has broken out around allegations of tax fraud, cases of corruption and a dispute for control over digital TV, in which two large business groups are facing off, one with the backing of the government, and the other supported by the socialist opposition.

A recent scandal broke out in the dispute over digital TV, with businessman Antonio Asensio accusing the government of threatening him with a prison sentence if he came out in favour – as he did – of the group headed by the company that publishes the daily ‘El Pais’.

Government spokesman Miguel Angel Rodriguez denied the allegation, adding that he was ashamed to have to affirm that freedom of expression was not in jeopardy in his country.

But Joaquim Molins, parliamentary spokesman for the nationalist Catalonians, demanded that the matter be clarified by Aznar himself.

The general coordinator of the Popular Party, Angel Acebes, said Spain was in good shape thanks to what his party and Aznar had done in one year – which Gonzalez “could not do in 13 years of government.”

Acebes blamed the current political tension on the socialist leader who, he said, was seeking to make all Spain party to his own legal problems involving the “dirty war” and corruption.