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Spains victorious Socialists turn to economy
MADRID - Fresh from a second consecutive election victory, Spains Socialists began to prepare a public works programme on Monday to reinvigorate a flagging economy. Prime Minister Jose Luis Rodriguez Zapatero, who boosted his tally of parliamentary seats but once again fell short of an absolute majority, said he would approach smaller parties to forge alliances.There are a number of parties we can speak to, an exhausted-looking Zapatero told a news conference. Obviously were going to be talking to all of them, he said, without specifying whether he would be seeking a permanent alliance or simply continue as he has over the past four years, with different deals for different legislation. The Socialists gained five seats for a total of 169 in the 350-seat parliament. The opposition conservative Popular Party (PP) also gained five seats to reach 153, while smaller left-wing parties and some nationalist parties lost ground. Sundays turnout was a high 75 percent, in an election overshadowed by the assassination of a former Socialist councillor in the Basque Country, blamed on ETA rebels. Participation almost matched that of 2004. The Barcelona newspaper La Vanguardia reported that Socialist officials had already met representatives of the moderate Catalan nationalist party Convergencia i Unio to talk about a possible deal. CiU, which won 11 seats, declined to comment. CiU would almost certainly want a bigger share of tax revenues for the wealthy Catalonia region. They (the Socialists) are seven seats away from an absolute majority. They can pick and choose their allies on an ad hoc basis, said Charles Powell, of San Pablo-CEU University. With Spains long economic boom slowing sharply since the global credit crunch bit late last year, Zapatero's first priority will be to put the lid on unemployment, which rose by 50,000 in February alone to 2.3 million. The government hopes increased spending will keep economic growth at 3 percent after 3.8 percent expansion last year, but some private economists, worried by high levels of debt in both households and firms, fear it could fall as low as 2 percent. Analysts also point to the long-term economic problems of a country that for years has relied on a construction boom and ballooning private sector debt for growth. The private debt load is reflected by a current account deficit running at nearly 10 percent of gross domestic product. Economists say Spain badly needs to make its exports more attractive and encourage inward investment in sectors other than property, notably by improving productivity as well as infrastructure and education. Posted by: Steve White 2008-03-11 |
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