In- Out referéndums

Nowadays, there is a question about if belong to a Union or not, if belonging to a country or getting independence. Why is it all about? and Why now? 

In the UK the EU referéndum can be a double edge sword. Scotland wants to stay in the EU, so they may get a better change if the leave the UK and then apply to the EU membership. However, if they vote in 2014 to remain as apart of the UK, they may vote therefore to stay in the EU in 2017. David Cameron, Primer Minister of the UK, on the side of the Conservatives is playing with fire. 

But the same situation can be applied to Mr. Mas, President of the Generalitat of Catalonia, Spain. They would like to get autonomy because they think they would be better as an independent state. Perhapps, but have they measure the consequences? Debt, EU membership, Spain vs Catalonia relationship, and so on. It is not an easy decision that can be taken fast, but quite the opposite it is necessary clear information of the situation, the difficulty to foreseen the unknown, and of course consensus and negotiations with the Central Government. 

The economic crisis is putting everything upside down. The EU today doesn not look as successfull as it did five years ago. Some territories want to have a referendum to leave it, and others to be a new state of it. What is it that? This "cherry-picking" is not viable today, and every member, country or territory must be solidary and work together to rearrange what one day it looked as a good idea. It is also necessary to protect national identities, what I think it is all about at the end. 

The Battle for Independence: A Catalan or a Spanish problem?

I Part- The Project

The Catalan independence movement has growth exponentially recently. The reasons are several and debatable, but there are clear circumstances that have helped its development. The judgement of the Constitutional Court in 2010, limiting the Statute of Autonomy of Catalonia of 2006, had an important social impact. The lack of response from the government also fuelled the unrest. Since then, demonstrations have led towards the demand for independence for Catalonia.

The political, sociocultural and economic conflict is now in a turning point where polarization is extreme. For some, (unilateral) independence seems the only way to go. For others, there are a few other alternatives. Anyway, negotiation is a prerequisite to achieve the best and the less painful solution for all. This project is intended for anyone who wants to have a better understanding of this situation and thinks that extreme positions are not the only solution.

 

Spain will give you reasons for coming back

“If you had to be reborn anywhere in the world as a person with artistic talent and creativity, 

you would want to be Don Quixote”

“In a village of La Mancha, the name of which I have no desire to call to mind...” was the place where  the famous writer Miguel de Cervantes, the creator of “Don Quixote”, was born. In this Southern country, where the sun shines 13 months a year, is where the film director Pedro Almodóvar became recognized to capture Spanish cinema in a so peculiar way.

There was also another story, as beautiful as these ones, about an American guy and a Spanish girl who met one by chance in the North of Spain, specifically in Santander. She was from Alicante and went there for an English course. He was the English professor and would live there for a while. Something special happened that day in the North of Spain, but it was too difficult to bet for it. There were many obstacles between them, however, they both fall in love and they decide to be two weeks together travelling around the country that made them fall in love.

Santander 

Santander

 They both had only a week together, what they spent it enjoying the beauty of Santander, its green cliffs next to the Bay of Biscay and the Royal Palace of La Magdalena, once the residence of Alfonso XIII, King of Spain from 1886 until 1941. After it, She had to go back to her city, in the south east of Spain, and they might not see each other again. However, the week after that, it was the 20th of June when the main festivity in Alicante begins, the hogueras. He had never heard about a tradition where people build a monument and during four days there are fireworks and firecrackers in the street, along with music and parades, so he had an excuse to go there and visit her. They stayed together until the 24th of June, when the monument is set on fire on the night of San Juan.

Nevertheless, he had to move to work in Cuenca, in Castile-La Mancha, closer to Alicante. Cuenca, a city on the inner plateau of Spain where the hanging houses are, the only remaining samples of this type of building. He promised her that if she went to Cuenca to visit him, he would show her on of the oldest and the most beautiful villages in Spain, Albarracín, in the province of Teruel, part of the autonomous community of Aragon. He took her hiking and climbing on the mountains until the birth of the Tagus River in the Sierra de Albarracin.


Something else was born there, on the banks of the river Tagus, but they only had two weeks left before he went back to the States. So, why not steal the time and create a secret between she, he and Spain. The next day, they were driving aimlessly, only with a map of Spain and some recommendations of places to visit.

San Sebastián

Zaragoza

Spain, a country to discover together

After a couple of hours driving, they stopped in Zaragoza, the capital of Aragon. They had something to eat in the Pillar square, admiring the Pillar´s church on the banks of the river Ebro. Then, they continued their trip to Pamplona, capital city of Navarre, where at that time of the year were the San Fermines or bull running festivity of the city. The day after, they start driving to the Basque country, specifically to San Sebastian, city that will be the European Capital of Culture in 2016 (along with Wrocław in Poland).

For the next destination, they wanted to explore the interior of Castile- Leon, its meadows, its castles and, of course, Burgos and Salamanca´s cathedrals. After this walk through history, there was one more stop before the end of the trip; Segovia. There, they got into the history of the Catholic kings of Spain with the famous Alcázar, they ate its main dish of pork, cheese and cured sausages and enjoyed its wine, before arriving to the airport, at the capital of the country, that would keep them apart.

Segovia

Salamanca

After this short ten days, they arrived to Madrid where their destinies would be separated. But, there were still some hours left, so they decided to go to the centre of the city and walk on the Retiro park and perhaps see the Prado museum. But then, it was time for him to leave. To leave the country he loves, and the woman with whom he shared and discovered it. She left him in the airport and started driving back to Alicante and her Mediterranean sea, always remanding those cities, those secret places on Spain that brought them together the love.

They know there are many beautiful places in Spain, but they were more than that, they were special cities to them, because now those places were theirs. This romance between three is still as alive as the first day, and every now and then he went back to Spain, to explore with her these exclusive and beautiful places of the warm southern European country. And every time, in a new city around Spain, he fell in love again to this country, and its woman.

Alicante

Alicante provincia

Opportunities behind adversities
This was a true story that at the beginning no one invested a penny on it. Nobody thought it was worthy, “to complicate it”, they said, “to many problems”, or “to weak to resist the circumstances”... That was what people were saying when they said they wanted to be together. What would happen with the distance, and the age difference? But the couple did not care, because they knew that they wanted to be together and they believe Spain will bring them what they needed. Maybe, they will need some time to be together but, as they always say, if there is a will, there is a way.

Maybe this can also be applied to other areas, as the finances. Give it some time, believe on it, and Spain will recover. Perhaps, it also needs somebody else who loves it too, and build a new momentum with it...

Can the 2013 achieve the economic targets?

After more than four years fighting against the economic recession, it seems that 2013 can be the turning point for some countries. United Kingdom is expected to get out of the recession this new year, as forecast announces an economic growth of 1.2% of Gross Domestic Product (GDP). However, the hit European countries, in which Spain is part of, will continue into stagnation. Spanish prevision of growth in the next year is still downturn, with a minus 1.2% decrease of the GDP in 2013.

UK´s economic strategy “is focussed on reducing the deficit, restoring stability, rebalancing the economy and equipping the UK to compete in the global race”, as the Chancellor of the Exchequer, George Osborne, explained in the Autumn Statement to Parliament on 5 December 2012. On the other side, Spanish austerity measures have only contributed to increase unemployment (up to 25%) and to provoke more social unrest.

However, it it necessary to remark that neither UK nor Spain are likely to kept their forecasts of deficit reduction in the year that has just entered. The objective of Spanish deficit was 6.3% of GDP at the end of 2012, “but it could be (above that),” as the Bank of Spain governor, Luis Maria Linde, said last December 2012; although estimations yet predict Spanish deficit to drop to a 4.7% of GDP in 2013. On the other side, UK will also miss its deficit target from the 2013-2014 financial year, as the Autumn statement announced an escalation to 5.9pc of GDP, or £98bn, as Mr. Osborne indicated (hm treasury, Dec 5th, 2012). This data would indicate that the UK deficit next year could be higher than the Spanish's.

Therefore, new cutting measures will be necessary to reduce deficit and the extensive public debt. UK budget cuts are not significant, only 1.5% real cuts during 2012, if compared with Spanish ones where the most striking difference is that Spain does not include any measure to support growth as UK has setting up. For example, UK new policy includes increasing funding for UK Trade and Investments or helping smaller and medium-sized businesses access finance and support “from £25,000 to £250,000 for two years” as Mr. Osborne set out in the Annual Autumn Statement. This strategy can probably be the best solution to alleviate the financial situation; something that the European Union also instituted in its programme 2007-2013 “new funds, better rules”.

That´s wrong folks!

When you look yourself in the mirror, you can have an image of want you see on it, maybe what you want to see from it, but perhaps it is not the real version of the fact. This is not the way to look at things to find the true reality.

Democracy, good word, but what does democracy really mean?. The closest example that we have in the world is just a mere reflection of the real one (where people can make choices and change things).
Today, in the London School of Economics (LSE), the Spanish Minister of Economy and Competitiveness, Luis De Guindos, came to explain "The Spain´s Economic Strategy". I still wondering was it is...

Nevertheless, for those who were not able to get in the conference, we stayed outside to, at least, have the possibility to hear some answers that could make the Spanish situation a bit more clear in our minds (not just some nice words to make us believe things are better than they really are...). In the door, I met some nice people from the 15-M movement (more info in twitter: @15mlondon) who, at the song of "They called it democracy, but it is not!", were raising their voices to be heard (because the is no other way). "Nicely" one of the Minister´s bodyguard told us to move back because the Minister was not going to answer our demands. Well, since at least we have some freedom of expression I would like to raise my voice as well to ask the questions for what I have no asnswer (and perhaps nor they do):

-What action is Spain finally going to take regarding to the European Stability Mechanism (ESM)?
-Why is there a contradiction about the amount of money Spain is supposed to ask to the European Central Bank (ECB) and the Wyman report?
-How and when are we [all, Spanish and the rest] going to see any good outcome of the economic policies taken in Spain to the economic recovery?
-Why to fund financial institutions with public money when the people can not even eat?

I can just say that the world we are living in, the things are happening and what we are doing to solve them are all wrong. There is not the way just to speech nice words and to wait results to come out, neither is the solution to shout and complain without trying to do something else. We have to work together, build something from what we have and try to develop it in the best way possible. But confrontation is not a solution.

We (the people) have the voices to fight from our rights, but (as this is not a real democracy) we can not change things that easily. In this capitalist (still) world only the powerful ones make the decisions. We have of course to use our voices, demostrate is necessary to be heard, but we should use them to build something else greater from the facts. Raise your voice, demostrate but do something else. They have to know we are here for more than just complaining. All together we can do it, because we also have the power, and Spain is not for sale!, we are here and we should defend it!

Green vehicles: the double-edged sword

The world is increasingly polluted. New laws, conferences and meetings are established among countries to solve this problem. In the European frame, the “Europe´s growth strategy” has set five ambitious objectives, that is: on employment, innovation, education, social inclusion and climate/energy, to be reached by 2020. However, what has been achieved?. There are many sectors in which contamination can be reduced using for example renewable energies. Vehicles are the ones that provoke 20% of CO2 emissions, “the major contributor to climate change, according to UK National Charity Environmental protection.

Energy and oil products are getting more and more expensive to the point that the standard barrel of crude oil or other petroleum products has reached 96.20 US $/bbl crude oil (OPEC basket day price), according to the EU energy database on the 6th of June, 2012. EU legislation has implemented a new Directive law to maintain minimum stocks of crude oil and/or petroleum products based on the current Council Directive 2009/119/EC of 14th of September, 2009. “The European Union’s dependency on imports of petroleum products is an increasing cause for concern for European economic prospects”. Also, the EU has established the “Euro standards” with the impact that all new cars must comply with strict EU vehicle emission standards.

The EU is putting in place an ambitious energy policy as is expressed in the Treaty of Lisbon by “covering the full range of energy sources from fossil fuels (oil, gas and coal) to nuclear energy and renewables (solar, wind, biomass, geothermal, hydro-electric and tidal)”. As one of the factors contributing to the development of energy policy and inside the mentioned Europe 2020 strategy framework, on 28th of April 2010, the European Commission presented a strategy for clean and energy efficient vehicles (“green vehicles”) in the COM/2010/0186.

Inside this 2020 strategy, the EU is committed to reduce its greenhouse gas emissions by 20 % by that time. Renewable energy on electric vehicles (EVs) is proposed as a viable solution.

Clean and energy efficient vehicles

There are many theories about electric vehicles. The reality is that the technology is not a new development, but a proven technology. In fact, many studies show that the electric vehicle has been around for over 100 years. History reflects how “in 1900, there were more than 4,000 cars on the road- a third each electric, gasoline and steam-powered”. In the same study, National Public Radio (NPR) describes how in 1920 with more developed roads, car owners wanted faster cars than the electric ones.

Also, in the 21st century new models were launched. Some electric cars currently in the market are: Nissan Leaf, Smart Fortwo, Chevy Volt and the coming electric Ford Focus. Speed has increased and price has become affordable.

Nevertheless, the awareness of a real solution to face climate change made the European Commission set out a policy the 28th April, 2010 in Brussels to support the creation of a clean and energy efficient transport system in the EU that will contribute to achieve the Europe 2020 objectives. This European strategy stated that “the plan is part of a sweeping new strategy for introducing more ‘green’ cars to the market, seen as crucial to reviving the car industry and weaning Europe off oil.” To comply with EU 2020 priorities, this legislation also includes those vehicles capable of using electricity, hydrogen, biogas or even efficient petrol-powered vehicles as alternatives.

Denmark, a model to follow

If inquiries are done into the European statistics, it is remarkable to notice that Denmark is the only country inside the EU without an energy import dependency with -18.80% (2009 EU energy statistics). There are many car companies which have opted for this future technology. In Denmark, EVs are a reality. We visited Insero E-mobility and Better Place, the two most important electric car companies in Denmark to know more about the characteristics of these EVs.

Better Place, Denmark

Insero E-mobility

Stine Højgaard, sales representative at Insero E-mobility, explains that “Green cars, including electric, hybrid and plug-in hybrid vehicles, are becoming more popular, efficient, powerful and fun to drive. In deciding to purchase a green car, you are helping the environment by reducing your carbon footprint when you drive”. The first concept to keep in mind is the real difference between the ICE-car (diesel and petrol cars) as opposed to hybrids and electric vehicles. Here, the focus will be on the Battery-Electric Vehicles because they are more common and more widely available.

Making the tour inside the Insero E-mobility car company, Stine Højgaard told us that the first thing you should examine is the range and autonomy of the EVs, that is to say, how many kilometers (or miles) the car can drive without needing to be recharged. For example, the Nissan LEAF's ability to carry five passengers up to 175 km (109 miles) under the New European Driving Cycle, according to Nissan Motors Media data. 

Another aspect is the battery life. There are three types of battery power: lead-acid (oldest and cheapest type of rechargeable battery, no longer used for e-car due to weight and environmental concerns), nickel-cadmium or nickel metal hydride (batteries that are maintenance free and difficult to damage. However they are heavy weight, higher cost), and lithium-ion (are also maintenance free and the newest type of rechargeable batteries). The latest is the type of battery mostly used in Electric Vehicles and in some hybrids.

Depending on the distance you daily drive, Stine Højgaard clarifies that some batteries should be run down to a certain level before charging them again. Other batteries should not be charged to more than 80% on a daily basis because the battery life is reduced when they are fully charged.

Stine Højgaard makes clear that the electric vehicle market is still fairly young, so certain aspects of buying this type of car will be uncertain. “Battery life and the price for a new battery are very difficult to predict. These factors must be taken into consideration, with an understanding that the green car market is growing and changing rapidly”. In this sense, the top CEO of Insero organization says that “only between 25-30 % of the energy comes from sustainable sources”. Therefore, how green they are, is very much depending on where the energy comes from.

Better Place

Better Place is a global provider of electric vehicle (EV) networks and services founded on the 29th of October, 2007. As Johnny Hansen, CEO of Better Place in Denmark, clarifies their mission is “to end our dependence on oil, accelerating the transition to sustainable transportation”. In their office in Copenhagen they have many Nissan electric cars which are already on the streets. Johnny Hansen explains the accomplished developments, as well as the obstacles still to overcome.

The best advantage is that EVs produce no harmful pollution to the environment and also, unlike traditional fossil fuel-powered cars, electric cars are quiet during operation. “Their automatic transmission make them easy and fun to drive”, Johnny Hansen describes. However, he also mentions the difficulties still to overcome such as the cost, placement and range of the batteries. “The greatest achievement is to reach a balance between price, technology and the market”. It is necessary to get all the elements together: industries, country policies, investments and society.

Morten Østergaard, Minister for Science, Innovation and Higher Education of Denmark, accounts for another positive side of the story: employment. “This new market is an opportunity to create jobs, innovate and invest in the future of our society at a moment that the entire world needs to fight against the economic crisis and the climate change”.

Denmark is one of the few countries in the world, as well as Israel for example (first Better Place office), that assesses the potential of electric cars and that takes policy measures to promote them as the inversely proportional to taxes, which means zero taxes for zero emission EVs.

Better Place, Denmark

Spain: new market, new solutions

After the nationalization of the subsidiary Spanish oil company Repsol IPF in Argentina and the Spanish electric company TDE in Bolivia in the first quarter of 2012, future strategies have to point out to other directions: renewable energies. That is to say, in terms of crisis and increase of oil and electricity prices, renewable energies are the solution to both economic recovery and environmental protection.

In Spain EVs have not had great success yet even under those circumstances. The closest example to electric vehicles are the hybrids. “Every brand has at least one car with these characteristics”, explains Paco Martinez, sales representative in Samar Mobil, Volvo car corporation in Alicante, Spain. Within this company they have hybrids from sports brands like Porsche, such as the Cayenne Hybrid, a plug-in hybrid, available for sale.

Paco Martínez also illustrates that Honda currently has three hybrid models: Jazz, Insight and CR-Z. “These 3 models have a system for harnessing the kinetic energy, using the deceleration and braking to convert that energy into electricity and charge the batteries installed in the lower part of the boot. They are maintenance-free batteries and are constantly charging”, exemplifies Paco Martínez. Honda also works with other green alternatives such as motor vehicles powered by hydrogen, which in this case implies that, all that comes out of the tailpipe is water vapor.

When it has to do with subsidies, at present Spain has no support for hybrid cars. These grants were given by autonomous communities every year from May to May, although this year they have not been renewed, or at least not yet. “The aid given by these autonomous communities did not cover the entire Spanish territory. You had to prove by the census that you reside in that community to obtain the aid from this city”, specifies Paco Martínez. The agency that manages the aid in Alicante is the Valenciana Agency of Energy (Aven). 

Achievement vs Competitiveness

Electric Vehicles are a promising technology for reducing the greenhouse gas (GHG) emissions and other environmental impacts of road transport. According to the “Impact on EVs” report on April 2011, it is stipulated that the price of the vehicle is a crucial point in the question whether one day EVs will be able to fully penetrate the car market, where “the median price for all Electric Vehicles is € 28,750”. As said before, the driving range is the other relevant criteria for EVs to be established in the society.

About government support and investments, the same study gives numbers describing that “the overall sum of € 21.6 billion over a period from 2008 to 2011 [was] divided almost identically between the USA (€ 8.6 billion) and the EU (€ 8.5 billion)”. There are many strategies to promote EVs. One of the Danish actions is to establish free parking for EVs. One measure to achieve Spain’s goal to have one million electric or hybrid cars on the roads by 2014 is to provide consumers who buy an electric car in Spain with a rebate of 15% off the price of the vehicle.

On an European level, the EU Economic Recovery Plan focus on the three Public Private Partnerships The Energy-efficient buildings, Factories of Future and European Green cars Initiatives. In addition to that, the EU has set out an ambitious strategy to reduce CO2 emissions from road vehicles and much has been achieved already. As the European Strategy on clean and efficient vehicles provides, “Regulation (EC) No 443/2009 setting emission performance standards for new passenger cars requires a fleet average emission of 130 g CO2/km for new passenger cars to be fully achieved by 2015”.

As the prediction is that traffic levels will continue to increase, road transport will continue to be a significant contributor to GHG. The proposed solution implies that one has to look at other directions where electricity prices remain relatively stable, while fossils fuel costs are rising and reserves eroding. Renewables emerge as the energy of the future while EVs are outlined as the clean alternative to reduce CO2 emissions and to open a new economic market. Therefore, green vehicles are a true double-edged sword. 

Is Spain investing in the past instead of in the future?

Spain is decreasing subsidies for solar energy while investing money in renewing the license for an existing nuclear plant? While the country is considered at the head of the pack in solar energy, the Spain has currently cut subsidies for solar energy. At the same time, Spain is spending money to renew the license for Garoña nuclear plant in the North of the Peninsula.

The Spanish´s Official Newsletter (BOE) published on January 28, 2012 a Decree-Law 1/2012 which “removes, indefinitely, [...] the financial incentives for new installations of the Special Regime until the problem is fixed the tariff deficit”.  In other words, companies will no longer receive fiduciary benefits from installing solar panels as a form of renewable energy as was the situation in the past before the economic crisis. In addition, this Law “indefinitely suspends the registration procedures in the register of pre-allocation provided by the Decree-Law 1578/2008 (for solar photovoltaic installations)”. This Decree-Law of 2008 announced a remuneration of the production of electricity by photovoltaic solar technology, which now has been abrogated for 2012 and subsequent years.

Mariano Rajoy, the President of Spain, said with this recent law all government support for new renewable energy projects would be halted. While, in the same Decree issued on 1/2012 explained that “the final report of the Nuclear Safety Council on tests conducted at Spanish plants indicate that all Spanish plants meet the safety standards needed to cope with earthquakes, other natural phenomena and various large-scale accidents”.

In light of these events, the debate about the renewal license of Garoña nuclear plant has re-opened. According to Nuclear Energy Institute (NEI) the lifespan of a nuclear plant license is 40 years.  If Spain follows this statute, it will mean that nuclear stations are designed for a four decade period. Garoña´s license expired in the Spring of 2009 when it the closure was agreed upon. Nowadays, The Nuclear Security Counsel (CSN) has reversed its agreement obtaining a renewal of twenty more years. What are the consequences?  On the surface, few consequences appear immediately.  But there are very harmful repercussions. And are there alternatives? What could they be?  Might they be favorable for humankind. 

In Spain there are 1,839 solar companies that have been established throughout the fifty provinces, according to solarweb, the most complete list of companies in the net. If these numbers are compared with the eight nuclear power plants in Spain, the difference is enormous, according to data provided by the CSN. If solar energy statistics are put into context, the photovoltaic power output, 3,386 MW, establishes Spain in the second position in the ranking of countries with the most installed solar energy in MW, just behind Germany (U.S. Energy Information Administration, Ecoworld, 2012).

There is good news! Solar energy consumption reached its record in July 2011. Photovoltaic Industry Association (ASIF, July 2011) data shows that 5% of the energy demand was covered by solar energy. However if this data is compared with the nuclear energy consumption which is 22%, there is still much more to do.

Source: Spanish Electric Grid (REE), July 2011

The drawback is renewable energies in general and solar energy in particular are not used to its maximum capacity. The Spanish National Action Plan for Renewable Energies (PANER) 2011- 2020 specifies that Spain is characterized, from an energetic point of view, by a structure of imported petroleum product consumption (p.12). This data is ratified by the World Nuclear Association (WNA) when it says that a fifth of its electricity is generated by its eight nuclear reactors.

New developing countries, new risks

However, solar panels in Spain are not developed as much as they could be. This situation leaves an open door for foreign markets as China or India whose governments are moving to stimulate domestic solar demand.

According to the new report on clean energy 2011 promulgated by Pew environment group, “US reclaims worldwide lead in clean energy investment” where the study shows that they invested more than $48bn in the sector in 2011, up from $34bn in 2010. In second place is China as “a dynamic hub of clean energy activity in terms of manufacturing and deployment”. It is noticeable to mention that Germany and Italy are noted as having  “solar deployment and investment soar”. As well as in India where “clean energy investments increased 54% in 2011” to $10.2 billion.

Spain is becoming an important source of clean energy production within the EU. “Almost 90% of the investment ($7,6 billion) was directed toward asset financing in the solar sector”, positioning itself in the forth position (64%) of solar investments behind of Italy (83%), Japan (79%) and South Korea (70%).

Distribution of investment by sector (2005-2011):

(Source: Bloomberg New Energy Finance; February 2012)

However, this data losses its value if the Decree-Law 1/2012 is taken into consideration since the cost of subsidizing renewable becomes unaffordable without financial incentives. Also, WNA provides again specific data about the consequences of this situation: “Solar has also been promoted with a feed-in tariff about EUR 30 c/kWh, but the take-up was so high that the government had to renege on its subsidy commitments in 2010 after investments had been made, almost halving those for large plants” (April 2012).

Achievement vs Competitiveness

Spain meets all the requirements to promote optimal use of solar energy thanks to its geographical location and appropriate climate. Spain is one of the European Union´s countries with the highest amount of solar exposure, however its  privileged position is not being exploited to its fullest potential. The main obstacle in the use of solar energy is the the initial large investment that is required in technology.  An advantage that Spain has is that a solar installation can be located anywhere in the country and it will produce energy and economic savings on the investment.

The Spanish National Action Plan for Renewable Energies (PANER) 2011- 2020 predicts that “by 2020 the share of renewable in our country will be 22.7% of final energy and 42.3% of electricity generation”. The data is contained in the advance of the Renewable Plan 2011-2020, submitted by the Ministry of Industry, Tourism and Commerce to the European Commission pursuant to its own directive on the matter (2009/28/EC), which includes targets for mandatory renewable energy for the EU and individual Member States in 2020, and the development of national action plans to achieve those objectives.

Perhaps we can say that Spain aspires to become one of the biggest drivers of this type of energy in the world. This is a sunny country is currently ranks high among countries with this type of investment. Luckily, maybe this kind of “industry” will help Spain overcome the crisis if they make a proper use of positive resource management.

Reforms Up, Reforms Down

Tough Consequences of the Spanish´s Crisis

During the past months Spain has lived in a period of unrest due to the acceptance of the General Budget for 2012. The right-wind government has been subjected to numerous criticism from the labor unions and the opposition party (PSOE). This controversial situation requires knowledge of divergent opinions to get a more complete view of the near future in Spain and to evaluate long term consequences.

Traditionally, the North of Spain has supported right-wind parties and the South of Spain has lived under more left wind parties. However, this situation is not black and white. Two members of Santander´s Worker Union in the North and an employee of the Spanish National Bank in Andalusia in the South of Spain will give different perceptions on what it is happening in the whole of the country.

To a certain extent, the most objective opinion will be provided by José Manuel Marañón a member of the Regional Executive of CCOO (Workers Commission) of Cantabria and the Foundation “May 1” union.  As a side-note, May 1st is when Spain celebrates the day of the worker. On one side, General Secretary of the Teaching´s Federation Javier Ramírez Diez will contribute his view regarding the worker´s union opinion in regards to the related issue. On the other side, Joaquin Sanz Ramirez, a banker from the Popular Spanish Bank (formerly Andalusia´s Bank), will also help us understand more clearly the measures taken by the Government of Mariano Rajoy, leader of the People´s Party (PP).

Spain, as many other countries, is involved in a severe economic crisis. The recent data provided by the National Statistics Institute (INE) has reported that Spanish economy shrank 0.3% over the three months to the end of March thus going back again into recession. This announcement makes it even more difficult to evaluate the positive results of the new austerity measures since they are thought to have influenced the decrease.

According to Manuel Marañón “the General Budget is deeply effected by bad policies from 2011 which will only increased unemployment and shift the economy into recession”. Up to this date, this is in fact the reality in Spain which has been displayed by many social demonstrations from workers and unions. The reasons of the last general strike (29th of March) and the following ones (1st of May) are propagated by “restrictive budgets, antisocial measures that require the middle and lower classes of our society to make far greater efforts than the rest”, as Ramírez Diez states when asked about the new law proposal of state budgets. However, Spain has to reduce its deficit from 8,5% to 5,3% by the end of 2012, which will involve taking austerity measures to keep expenditures within bounds. Joaquín Sanz puts forward a factual case because “the previous governments have had more expenditures  than income. They have caused a deficit in the current moment of world crisis that we can not bear. This has led to a drastic cut in this budget that we have to account for”.

It is necessary here to recapitulate the most important changes in respect to the prior law as well as the differences between previous and current governments. The objective perspective appeals to the reasoning that “these budgets share the same ideological source as previous ones, what means that the most important thing is to reduce the deficit by an adjustment of costs. Although it is true that they have gone much further in areas such as cuts in education, Research & Development and Innovation (R+D+I)”, as Marañon explains. However two divergent points come to light when the question is taken to the outliers stances:
Ramírez Diez denotes that “above all, the differences are in the importance given to social policies (education, health and social welfare), the exaggerated cut in the inducement of the economy through public works and public investment”. All these measures proposed in the draft budgets “are contrary to those that a progressive government that is committed to equitable distribution of resources  would pose”. On the other hand, Joaquín Sanz mentioned Margaret Thatcher when she said that the socialist governments work very well, as they spend the remnants left by previous governments. Historically all socialist governments that have survived and are still in power have left the country in debt and economic crises.

Next point on the table is labour reform where workers are the most disadvantaged because as Marañon describes “essentially, there are two measures that harm workers: cheaper and easier dismissal of workers, and the failure of collective bargaining (that individualized employment relationships). Perhaps the only measure that benefits is some improvement for receiving partial retirement through a relief contract”.

Nevertheless, Ramírez Diez thinks that “there are not any measures that benefit them.  And as for prejudice, I think all of them are very harmful to workers with respect to other taxpayers. They are unjust measures are that are causing more unemployment, impoverishment and social injustice.” Still, Joaquín Sanz accounts for the belief that  “this is not the whole reform. Given the number of companies and freelancers who have closed their businesses, it is more reasonable lower part of its workforce to save the company and keep the rest of the workers in it, than to fire them all. Perhaps if this had been launched before, probably we would not have the current 24% unemployment rate”.

This arguments can be pinpointed in real situations. For example, Marañon cites “the first effects of the reform have been felt, in Cantabria, in the industrial sector where employment was of higher quality. The ideal case is the British company B3 Cable Solution which raised an ERE's of Extinction (Record of Employment Regulation) for 130 workers, and the rest had to lower their wage by 10%”. This, and other cases will lead to the question of if unemployment will rise with this Labour Reform. “In fact, this very government expects unemployment to increase by 600,000 people reaching six million unemployed by  the end of 2012”, Marañon reveals.

Ramírez Diez manifests his concerns: “Yes, we are seeing and suffering it already in many companies, and the local and regional administrations have also joined the bandwagon”. In spite of this statement, Joaquín Sanz remarks that “we should first clarify that the spirit of this law is to help employers. Employers could find a cheaper way to reduce workforce when they can not pay them as well as a way to increase their production and market penetration of their product. On the other hand workers should not see that this law is just looking for firing them. Then, both (employers and workers) fulfill their responsibilities and work. I understand that eventually the situation will stabilize and a recovery will begin”.

The Spanish unrest concerning these circumstances could lead to more social protest as the three interviewees perceived. Here, all agree on the following: Marañon comes to the point that “there will be more protests. Another thing is that they will result in severe social unrest which it will depend on the degree of desperation of the most harmful groups hit by the crisis”. Ramírez Diez gets to the bottom of this, saying that “if government policies do not change, they begin to negotiate with social partners, give collective bargaining the importance it has, change labor reform in the parliamentary process, mobilization of workers and students with trade unions”. Also, Joaquín Sanz describes this scenario as “inevitable”. He even remarked upon the context: “when Spain is not ruled by left wing parties, demonstrations are common. Nevertheless, I would ask the unions to act responsibly to all get us out of this situation, especially when we have more than 5,200,000 unemployed”.

This seems to have no short term solution, but negotiation between parties. Marañon and Ramirez Diez analyze the union action as “if the government does not sit down to negotiate labor reform and continues down the path of cuts in social spending and public investment, unions will continue campaigning”, explains Marañon. Also Ramirez Diez has a point in “urge the Government to arrange and offer the negotiation as the solution to all conflicts”. Here, Joaquin Sanz, as a citizen, “hopes they are responsible and deal with the situation in which we are in”.

The current Government has made reforms, cuts and adjustments all over the budget. There is a way to come out of this crisis for Spain. President Mariano Rajoy bets on these solutions. Although, there could be other directions to address the situation. Marañon emphasizes over a call on the government dialogue, “since February we are in a sustained process of mobilization calling on the government dialogue. But to their deaf ears we have been forced to the extreme measure of the general strike”.

Ramirez Diez expounds in regards to alternatives: 
“Fiscal reform, taxes on large fortunes, a different tax from the SICAV (Investment Company with Variable Capital), a commitment to the fight against tax fraud to improve revenue and reduced spending on issues that do not compromise what we know as the status of welfare (education, health, dependency, social policies), such as defense”.
Besides, Joaquin Sanz has confidence in “waiting a reasonable time to see if the expected results are reached. There are always many other possibilities and none have a magic wand to solve problems 100%. They are a wealth of skills and attitudes that determine the results thereof. Measures should be taken by governments in this very moments, although leaving open the possibility of being modified if the desired results are not met”.

Spain is not the only country who is suffering the consequences of the financial crisis. On the global perspective Germany has supported Spanish measures. Notwithstanding, divergent opinions claiming aptitude in the field. Marañon offers an explanation of the current situation when says that “”Germany has been extolling the cutting measures in the countries of Southern Europe since 2009 and it seems that in general, things are not improving much. Is a real change necessary in economic policies”. According to this idea, Ramírez Diez interprets that “Germany is one who has, or at least given its approval to the budgets. That is good for Germany. But these budgets are not good for Spain. They are bad, antisocial, depressive, unfair,... will not generate any economic recovery and we will sink the country further into economic depression.”

On this very end, Joaquin Sanz defined this reform as “very similar if not equal to the one taken in Germany with the unification of the German states”. Also, he goes on step further when illustrates that “time is something that will let us know whether this reform will start recalling the recovery and the revival of our economy and the reduction of unemployment, something that all Spanish are wishing. 

A country with a low rate of unemployment is a country alive, active, with social improvement, quality of life... in short, what we hope to achieve for the great country of Spain”.

As this article is being written, Spain is recoiling from yet another economic hit.  Bankia, an important bank in Spain, is in the process of being nationalized by the Spanish government after reporting huge losses.  This is yet another speed bump on the road to economic recover y for Spain. The high deficit and debt along with the high rate of unemployment make the situation more complicated to find the best solution between different political parties, associations and workers to unravel.  With this in mind as the sun dawns once again on the Iberic Pennisula, the Spanish people are hoping for a long awaited solution that will ease the current situation. 

Joaquín Sanz Ruiz

Javier Ramirez Diaz

José Manuel Marañón

Reformas “Sí”, Reformas “No”

Debido a la polémica situación que está causando la Propuesta de Ley sobre los Presupuestos Generales del Estado es necesario conocer opiniones diversas, a favor y en contra, de los mismos para tener una visión más completa del futuro próximo de España y poder evaluar sus consecuencias a largo plazo. Para ello, la opinión de Javier Ramírez Diez, Secretario General de la Federación de Enseñanza por un lado y el punto de vista de Joaquín Sanz Ruiz, bancario del banco popular de Andalucía por el otro, han sido proporcionadas en anteriores posts con el fin de ayudar a entender con mayor claridad las medidas tomadas por el Gobierno de Mariano Rajoy, líder del Partido Popular.

En esta ocasión, Jose Manuel Marañón miembro del Comité Ejecutivo Regional de CCOO de Cantabria y la Fundación “1 de Mayo” da otro punto de vista, quizás más neutral, sobre la actual situación española.

Nombre: Jose Manuel Marañón

Cargo: Miembro del Comité Ejecutivo Regional de CCOO de Cantabria y la Fundación “1 de Mayo”

P: ¿Qué piensa de la propuesta de ley sobre los presupuestos generales del estado?.

R: Los PGE profundizan en las malas políticas de los de 2011 que no hicieron otra cosa que aumentar el paro y hacer recaer la economía en la recesión.

P: ¿Podría explicar los puntos más importantes del cambio sobre la ley anterior? Diferencias entre gobiernos?.

R: Estos presupuestos beben de la misma fuente ideológica que los anteriores, es decir lo importante es la reducción del déficit por la vía del ajuste en los gastos. Sí que es verdad que han ido mucho más lejos en temas como los recortes en educación o en I+D+i

P: ¿Qué va a provocar este reforma laboral?

R: Esta reforma laboral va a provocar más paro, despidos más baratos y, sobre todo, un incremento del miedo que va hacer que muchos trabajadores y trabajadoras, individual o colectivamente, acepten con una cierta resignación el empeoramiento de sus condiciones laborales en temas como salario, jornada, movilidades. Etc.

P: Cuáles son las medidas que más perjudican a los trabajadores? Y las que más les benefician?.

R: Fundamentalmente, las medidas que más perjudican a los trabajadores son dos: el abaratamiento y las facilidades para el despido y la quiebra de la negociación colectiva que individualiza las relaciones de trabajo. Quizás la única medida que le beneficia es una cierta mejora para acogerse a una jubilación parcial a través de un contrato de relevo.

P: Ha tenido que solventar últimamente alguna situación en la cual el Real Decreto de la Reforma Laboral afecte negativamente al empleo? Podría explicar el caso?

R: Los primeros efectos de la reforma se han sentido, en Cantabria, en el sector industrial en dónde se daba un empleo de mayor calidad. Caso paradigmático es el de B3 Cable que tras plantear un ERE de extinción para 130 trabajadores lo ha dejado en apenas una veintena pero a cambio de que los demás se bajen el salario un 10%.

P: Cuál cree que es el sector que más ha sufrido los recortes?.

R: En primer lugar, los parados de larga duración que han visto como se les van acabando las prestaciones sin perspectivas de encontrar empleo. Y en general, los colectivos con mayor riesgo: mujeres, jóvenes, inmigrantes, personas con baja cualificación….

P: Piensa que con la reforma laboral subirá el desempleo?.

R: Seguro que sí. De hecho, el propio Gobierno prevé que el paro se incremente en 600.000 personas más con lo que rozará a finales de 2012 los 6 millones de parados.

P: La reforma de regulación de empleo cree que facilita despidos colectivos?

R: Evidentemente. Y más en momentos de crisis dónde al 99% de las empresas les resultará sencillo justificar 3 trimestres consecutivos de bajada de beneficios con lo que aparte de abaratarse el despido deja al trabajador sin capacidad real de defender sus derechos en los tribunales.

P: Cree que van a realizarse más revueltas sociales?.

R: Que va a haber más movilizaciones es seguro. Que la cosa derive en revueltas sociales intensas dependerá del grado de desesperación al que lleguen los colectivos más golpeados por la crisis.

P: Cree que estas medidas solucionarán la situación actual de España?

R: Estas medidas solamente van a profundizar en la recesión, el paro, el empobrecimiento, etc. Insisto, esto ya se probó en Japón a principios de los 90 y el resultado fue un largo período de estancamiento económico.

P: Cuáles son las acciones que van a tomar los sindicatos?

R: Los sindicatos, si el gobierno no se sienta a negociar la reforma laboral y sigue por el camino de los recortes en el gasto social y en la inversión pública, seguiríamos movilizándonos. De entrada, concebirnos las manifestaciones del 1 de mayo como grandes protestas contra la actitud inflexible del propio Gobierno.

P: Qué otras medidas, si las tiene, hubiera propuesto?.

R: Desde febrero estamos en un proceso de movilización sostenida haciendo un llamamiento al diálogo al gobierno. Pero ante sus oídos sordos nos hemos visto obligados a la medida más extrema de la huelga general.

P: Cual es su visión de los resultados de la huelga general del pasado 29 de Marzo? Fue efectiva? Supuso algún cambio?.

R: La Huelga General y sobre todo las manifestaciones del 29 de marzo fueron un éxito rotundo lo que pone en evidencia el hartazgo de mucha gente y la capacidad de liderazgo de los sindicatos confederales. En cuanto a la efectividad, en todas las huelgas generales de la democracia en España se han tardado meses en ver resultados palpables.

P: Según Alemania, éstas medidas van a tener éxito, qué opina al respecto?.

R: Alemania lleva ensalzando las medidas de recortes en los países del Sur e Irlanda desde 2009 y no parece que, en general, las cosas estén mejorando. Es necesario para esto un cambio en las políticas económicas.

"Ofrecemos la negociación como la solución de todos los conflictos"

Nombre: Javier Ramírez Diez

Cargo: Secretario General de la Federación de Enseñanza

P: Qué piensa de la propuesta de ley sobre los presupuestos generales del estado?

R: Son unos presupuestos restrictivos, antisociales, que a las clases medias y bajas de nuestra sociedad les obligan a realizar esfuerzos mucho mayores que al resto. Crean una fisura importantísima en la Enseñanza de nuestro país con respecto al resto de la OCDE, tanto en financiación como en recursos materiales y humanos, al igual que sucede en Sanidad y dependencia.

P: Podría explicar los puntos más importantes del cambio sobre la ley anterior? Diferencias entre gobiernos?

R: Sobre todo, las diferencias están en la importancia que les dan a las políticas sociales (educación, sanidad y dependencia), el exagerado recorte que hay en la incentivación de la economía mediante obra pública e inversión pública. El desprecio absoluto que proponen ante la I+D+i, con su recorte al igual que la política de becas. Y especial mención merece la amnistía fiscal a los grandes defraudadores en vez de plantear el fortalecimiento de la agencia tributaria y la persecución del fraude como medida de ampliación de la recaudación. Así mismo echamos en falta una reforma fiscal, impuestos a grandes fortunas, bancos, etc.

Todas estas medidas que se plantean en el proyecto de presupuestos son contrarias de las que plantearía un gobierno progresista, que apueste por la distribución equitativa de los esfuerzos.

P: Cuáles son las medidas que más perjudican a los trabajadores? Y las que más les benefician?

R: Beneficiar creo que ninguna. Y en cuanto al perjuicio, creo que el conjunto de ellas las hacen sumamente lesivas a los trabajadores con respecto al resto de contribuyentes.

P: Ha tenido que solventar últimamente alguna situación en la cual el Real Decreto de la Reforma Laboral afecte negativamente al empleo? Podría explicar el caso?

R: Estamos viendo como día a día se están incrementando los despidos por "causas objetivas" alegando las empresas una disminución de los ingresos, indemnizando a los trabajadores con 20 días por año trabajado. Además estamos temiéndonos en varias empresas ERE's de Extinción para "aligerar" las mismas de las personas de mayor antigüedad. Esto antes no sucedía, negociábamos los expedientes de regulación como suspensiones temporales, y explorábamos todas los posibilidades antes de los despidos, pero ahora las empresas tienen una salida más fácil y económica para ellos, creando verdaderos dramas sociales.

P: Piensa que con la reforma laboral subirá el desempleo?

R: Sí, ya lo estamos viendo y sufriendo en muchas empresas, y en las administraciones tanto locales como regionales también se han sumado al carro.

P: Cree que van a realizarse más protestas sociales?

R: Si las políticas del gobierno no varían, comienzan a negociar con los agentes sociales, dan a la Negociación Colectiva la importancia que tiene, y modifican en el trámite parlamentario la gravísima reforma laboral, la movilización de los trabajadores, estudiantes, con los sindicatos a la cabeza, la protesta social estará servida.

P: Cuáles son las acciones que van a tomar los sindicatos?

R: Lo primero instar al Gobierno a negociar, y ofrecer la negociación como la solución de todos los conflictos. Con la carta que Toxo y Méndez le enviaron a Rajoy en este sentido, la pelota está en el alero del Gobierno.

P: Cree que estas medidas solucionarán la situación actual de España? Qué otras medidas, si las tiene, hubiera propuesto?

R: Las políticas del gobierno creemos que son erróneas, que agravan problemas sociales y no solucionan ni a corto ni a medio plazo la situación de los más de 5 millones de parados ni la de aquellos que ven que los suyos penden de un hilo.

La reforma Fiscal, impuestos a las grandes fortunas, una fiscalidad, diferente a las SICAV, una apuesta por la lucha contra el fraude fiscal, para mejorar los ingresos y una reducción del gasto en aquellas cuestiones que no pongan en peligro lo que conocemos como el estado del bienestar (educación, sanidad, dependencia, políticas sociales), como puede ser Defensa.

P: Según Alemania, éstas medidas van a tener éxito, qué opina al respecto?

R: Que Alemania es quien ha hecho, o al menos a dado el visto bueno a los presupuestos. Que son buenos para Alemania, puede ser. Pero creo que todavía somos un estado soberano, y que los alemanes de la CDU conozcan antes los presupuestos que nuestro Parlamento no me gusta nada, no es buena señal. Estos presupuestos no son buenos para España, son malos, antisociales, depresivos, injustos, ... no van a generar ninguna recuperación económica y nos van a hundir más en la depresión económica.

Another pot hole for the Spanish economy

The nationalization of the oil company YPF (Fiscal Oilfields) by the Argentinian government put Spain in the cross-hairs once again at a time when the benchmark index of the Spanish stock exchange (IBEX 35) has toppled more than 2%.

The expropriation of the shares owned by the Spanish subsidiary Repsol has taken place due to a “Decree of Necessity and Urgency”, according to Argentina's President Cristina Fernandez de Kirchner. This action has mangled the relationships between the two countries. The Spanish Industry Minister, José Manuel Soria described the measure to expropriate 51% of company shares as “hostility against interests and against Spain”.

Antoni Brufau, chairman of Spanish oil company Repsol, a company that owns a 57.43 percent stake in YPF will call for compensation in international arbitration. He also said that the expropriation of YPF is illegal and announced he is willing to sue Buenos Aires in a hearing to settle the dispute in the World Bank (WB).

The Argentine government´s decision has caused Repsol YPF stocks to take a sharp downturn due to the uncertainty of the situation as a result of the Argentine´s government cutting subsidies and the call for the expropriation of the 51% shares held in IPF. The Argentine government's plans are spurring stock volatility both in New York and Madrid Stock Exchange. Argentina has splintered the “trust with Spain and the international community”, according to Foreign Minister Jose Manuel Garcia Margallo. Speculators allude to an area in the south-west of Argentina called “Dead cows” region, where a new stockpile of oil was found, as one of the reasons this law was decreed.

The Argentinian oil company IPF has a long and diverse history since its creation in 1922. In 1992 during the administration of President Carlos Menem (1989-1999) Repsol bought out $15bn worth of shares saving the company from bankruptcy.

The new Argentinian President Kirchner refuses to pay $10bn to the Spanish company Repsol arguing that expropriation is a measure “according to the law and guidelines established by the Constitution of Argentina”. The confrontation amid Respol IPF´s nationalization and Kirchner´s government could necessitate intervention from the international finance community and could be a setback in the Argentina´s economic situation. As Wall Street shows YPF stocks topped the list of biggest percentage price decliners among common stocks on the New York Stock Exchange at the close of April, 18th with a -11.16% ADS.

The Spanish population is highly torn from the latest labor reforms put into place by the new right-wing government coupled with civil unrest in the society. Accompanied with the underlying weakness of Spain´s Banks, it is hard to wonder if Argentina has not just hammered another nail into Spain´s coffin.