The European Union warns of the risks of corruption in Spain The reverberations of corruption in Spain activated alarms in Brussels. The European Commission warned in a report political insider who had access to the paper, the negative impact of the recent scandals, particularly after the publication of papers extesorero PP, Luis Barcenas . This is just the latest in a series of cases of high-profile corruption, including one against the son of King Juan Carlos. As a result, the Spanish have lost confidence in its political class, says the document. Although Brussels considered very premature to say whether there are potential threats to the stability of government, insists that the growing frustration could lead to many Spanish to a complete shutdown of politics, and underlines the decline in the polls of the two large parties PP and PSOE, as a side effect. Apart from the political implications, the report also warns that international investors are following the situation closely. Along with the remains unfinished reform the banking system and the unknowns on the institutional structure (local government reform, reform of the Bank of Spain, creating an independent fiscal authority, division of power with communities and independence of Catalonia) the Corruption is another drag on investor confidence in Spain, said the document. The Government admits some concern in Europe by the Spanish stability Government sources yesterday said they were not palpable summit particular concern about Spain. The case did not come up in talks between the leaders. What there is a general concern, some concern about the stability of Spain (reflected in the risk premium) and Italy, for the elections, according to the same sources admitted. Brussels has so far maintained a respectful and virtually impregnable institutional silence over the case Barcenas , after the publication of the paper manuscripts of PP extesorero pointing thousand deliveries to almost all members of the leadership of that party. Including President Rajoy, who flatly denied having received money black. Last Friday, a spokesman for President Jose Manuel Barroso at a press conference refused-up to seven times-rule on the case. At various media nagging questions about whether there is concern in Brussels or social tension that can generate such scandals, the spokesman said that the Commission has not had contact with Spain on this issue. Its an internal matter, he merely replied again and again, to clarify that in no case later will affect the program bank rescue. On Wednesday, a high European source simply explain about that everything that rises instability is bad. Brussels is silent in public about the risks posed by the situation But beyond the brief internal report by Brussels-similar to the frequent diplomatic notes, in a tone usually sterile, are issued on the political situation in each country, the concern in Europe is indisputable. A senior source explained Eurogroup few days ago that political and social risks, and not just related to electoral processes such as Italy, are already the most concern for the stability of the euro. In the big cities, Berlin repeats the litany of Brussels and says that it is an internal affair, a spokesman was referred to the statements of Chancellor Angela Merkel, who on Monday closed ranks with Rajoy and expressed their support. However, a French diplomatic source did show concern, including how the case may affect the negotiations on the EU budget. The negotiation is further complicated by the internal situation in any country, with everything related to the elections in Italy and the weakening of the image of Rajoy in Spain. In the official channels and out of them is a huge concern and expectation of the outcome of the case. And while some caution: just outside microphone openly admit the risks Spanish political situation. European sources defending question both Rajoy (everything is false, except for some things) and the absence of resignations: In any country in the North the situation would be different. We have long European partners emphasize the monumental works in the miles of high speed rail in inflation airports: with that kind of scandals is difficult to see how Madrid can claim new regional funds indicate. The report judged premature to say whether there are threats to stability The sources warn of two immediate consequences of corruption: first, distrust of the partners will make the guardianship of Spain, which has requested a bailout of about 40,000 million , is even more demanding on. Furthermore, diplomatic sources cast doubt Rajoys team can keep the pace of reforms: billable corruption as a major weakness of the government, the legitimacy deficit may hinder the announcement of the cuts agreed in Brussels in 2014 . The document itself warns that corruption weakens the first signs of improvement fall risk premium, return of foreign investment, increase exports and some relief in the fiscal situation, which is not yet reflected in the real economy: The Spanish are still vague and unsatisfactory only promises that things will improve in the last quarter of the year. Outside the official sources, analysts agree with the internal review of Brussels on the risks associated with the escalation of corruption. Daniel Gros, director of the European Centre for Policy Research, explains that the case Barcenas comes at a very bad time. If the trial confirms the evidence, we can expect the highest level resignation for the good of the country. The amount of the gift does not matter as much as the bad impression because everything about the envelopes, and the feeling that this is just the tip of the iceberg . In Berlin, Ansgar Belke, the influential think tank DIW, said that the case helps to increase North growing distrust regarding the governments and parliaments of the South, in what is a dangerous kind of confirmation of the worst prejudices towards Spain. We have seen this in Greece, and in the past we saw in Germany. But in crisis, feed negative perceptions \ [about the periphery of the euro \] is a serious problem facing European solutions. In addition to the international dimensions, internally the Government is going to cost to maintain the speed of adjustments, although both Brussels and Berlin are aware of the great effort made by Spain in this regard. Hence, Merkel has given its full support to Rajoy . European tutelage is anticipated even more demanding for greater distrust Javier Noya, researcher at Instituto Elcano and director of the Observatory of the brand Spain, considers the case Barcenas is devastating for the image of Spain. It rains in the wet, and the fact that one does not expect a resignation to feed that topic of the virtuous North and South sinners. After the disaster that the bursting of the bubble, deteriorating the brand Spain had stopped lately: now returns to the point of he who draws parallels with Berlusconis Italy, an unprecedented . Noya speaks of crisis of legitimacy in cases affecting the head of state and President of the Government: With these scandals joins the economic risk premium, because of doubts about the economic recovery and debt political risk premium that had previously only in uncontrolled regional accounts and nationalist tensions. Wolfgang Münchau, Eurointelligence director, brilliantly sums up the mess, I have seen many political scandals. This is not the worst, not even close, but probably one of the most dangerous for the dates and circumstances. Do not underestimate the financial and European dimension in all this. The story is not yet large enough, but it will be if more allegations come to the surface. If Mariano Rajoy can not solve the case quickly, all this is going to be awfully hard internacional.elpais/internacional/2013/02/07/actualidad/1360268961_129135.html
Posted on: Tue, 12 Nov 2013 23:12:48 +0000
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