Social crisis, instead

 Since "networks are part of our reality" (M. Castells), I will perform this role sharing some ideas I have gotten from Manuel Castells, today at London School of Economics (LSE). Under the title: "The crisis always rings twice", Manuel Castells gave us an answer about how the financial crisis has caused. He explained that it is/was "a combination of new technology, through a process of deregulation and reckless of financial managers".

Financial system is built in a sense that people do not mind. As Manuel Castells explained, reffeing to the action we are taking to solve the financial crisis, "we save the banks, but let the people fall". He also interpreted the current crisi of the power´s system as one where the "elites have lost the capacity to rule the financial system".

Furthermore, there is a more important cause for the moment we are living in: a social crisis. Since every economic process implies a social process, here it is the explanation of how people interact and organize through the network and the implication this has to our lifes. Manuel Castells refers the networks as an important basis of the self in what he calls it "the real virtuality", where information is the cornerstone of humanity.

He links the social process to the fact that the economic crisis has lead us to a social crisis, pointing out the question: "who has lent money to a non-family member? not many nowadays", was his answer. And, who will be able to work less if they will be paid less? A positive answer of the former question is what he describes as "post capitalism" or "non-capitalism" society. That it will probably happen soon.

However, meanwhile there is a process of marginalization. Here, the case of Greece came out as "they are going through a process oof desistegration on its political system". Also, the Spanish indignadoswas  represented by the statemet of "when systems block, the new social opinion is formed".

Therefore, he made sense of the fact that the economic crisis is not over, but there exists a political crisis to legitimacy that has been followed by a social crisis where: "European identity will work fine as long as there is not crisis".

Everything here emphasize the current economic and political crisis with a new aspect: a social crisis. However, it was his last comment what called my attention: "the non-global global crisis", where global economy is growing.

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!

Defenders of... what?

Is the media an instrument for the government and big corporations to achieve their personal interest or is it really a powerful weapon to unmask them? The sad truth is that the media has become, a part from a few exceptions I will mention later, a easy tool for big conglomerates to get profit. The only interest here is: money, and on the bottom of the scale: look for the truth or merely inform.

Shadows of liberty, a documentary directed by Jean-Philippe Tremblay, exhibits the crisis in the US media through history. There are many scandals of goverment and large companies that, as Friedman said in the documentary (if I remember correctly) , if a news does not appear in the mainstream media as The New York Times, The Guardian... is like it has never happened. So, how can we (the journalists) keep the integrity of our professional values if there are contradictory interest behind? Where are people like Woodward and Bernstein nowadays? Oh right! they are refugees in an embassy to flight against the White House... (I will leave aside this lastest example since it is a hard to speak case, and everybody has their own opinion. But as one section Shadows of liberty alludes related to similar subjects in the past: "kill the messenger").

Returning to the docuemtnary, I would like to congratulate Tremblay and his team for brighing to light those hidden interests of big conglomerates and defending the truth of the facts even at the prospect of losing your jobs, because people and ideas like yours makes me believe again in the profession I chose to study.

“If you're not careful, the newspapers will have you hating the people who are being oppressed, and loving the people who are doing the oppressing.”  

Malcolm X

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.