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Spain's Prime Minister Jose Luis Rodriguez Zapatero speaks during a press conference after a minister's meeting at the Moncloa Palace, in Madrid, Monday Sept. 26, 2011. AP Photo/Daniel Ochoa de Olza
Spain
Spain parliament dissolved, stage set for election
Spain’s Prime Minister has decided to call a general election four months earlier than originally planned – as the country moves yet further into its debt crisis.
3.19pm, 26 Sep 2011
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SPAIN’S PRIME MINISTER dissolved the country’s parliament today – four months earlier than required – setting the stage for a 20 November general election that is likely to focus on an economy saddled with 21 per cent unemployment, anemic growth and gloomy future prospects.
It is widely expected to that the move will bring in a new government, led by the conservative opposition Popular Party.
Jose Luis Rodriguez Zapatero will not seek re-election after having having served two terms, spanning nearly eight years. He announced this in July, as well as the date for early election in November.
Today, Zapaterosigned a decree dissolving the legislature and informing King Juan Carlos.
Besides its unemployment woes and sluggish growth, Spain’s borrowing costs are soaring as its economy struggles to shake off the outcome of a burst real estate bubble, raising periodic fears it might have to join eurozone partners Greece, Ireland and Portugal in needing an international bailout.
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Zapatero has introduced deeply unpopular austerity measures, which have caused even his party’s traditional support base turn away, reports BusinessWeek. Opinion polls are giving the opposition a record lead.
Zapatero did not have to call elections until March, but he has moved them up in a bid to cut his Socialist party’s losses, although the stated reason is he wants a new government to have a fresh slate for budgetary and other economic decisions when the new year starts.
Zapatero, under intense pressure from the EU, the United States and international institutions, has taken a bevy of austerity measures such as extending the retirement age, freezing civil servant wages and amending the constitution to force future governments to keep their deficits very low.
He said Monday that from now to 20 November he does not expect to have to adopt any significant economic measures, “but if it were necessary, I would.”
He also expressed confidence in Spain’s future, despite the hard times. “I know that sooner rather than later we will overcome the current difficulties,” he told reporters.
Although Spain’s[ parliament is officially dissolved, emergency measure can be introduced by a permanent legislative committee if further eurozone problems raise their heads, Reuters reports.
Additional reporting by the AP
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As I walk 500 miles across northern Spain (Camino Frances), I am astounded by the lack of good work ethic throughout. The practice of "siesta", closing shops and offices for three hours in the day and the propensity of many of those workers to spend that time in the pub means that very little work gets done. The country is broke not necessarily because of a reckless banking-class or property-bubble but because they seem to be work-adverse.
They do reopen at 5 and stay open until 9. Most of the shopping centres stay open til 10. As for them always being on the pub i lived in Spain for 4 years and the only people I ever saw drunk were foreigners. In fairness they work hard in high temps.
This link is to an article describing how postwar Germany turned around it’s ailing economy.
Germany’s experience may offer some valuable lessons for Spain and other European countries that are in difficulty. http://www.econlib.org/library/Enc/GermanEconomicMiracle.html
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