Can Spain’s scandal-plagued government survive?
Spain’s prime minister, Mariano Rajoy, and his Popular Party are embroiled in a scandal that threatens to bring down the government. The flare-up in the long-rumbling scandal comes at a bad time for Spain, which continues to struggle to revive an economy where unemployment is around 20 per cent. Tobias Buck, Madrid bureau chief, and Tony Barber, Europe editor, join Gideon Rachman to discuss the crisis.
♦ Kofi Anna’s Africa Progress Panel releases a report lambasting Eurasian Natural Resources Corp for “opaque concession trading” costing the Democratic Republic of Congo $725m.
♦ With normal post-recession government employment expansion, US unemployment might be as low as 6.3 percent, but this recovery is different, argues Derek Thompson.
♦ Spain has become a destination for vitro fertilization and there is no shortage of egg donors. Der Spiegel talks to one woman who donated eggs to ease her financial difficulties.
♦ The Bhutto family has been notably absent from campaigning in Pakistan. The FT looks at whether this is the beginning of the end for the Pakistan People’s Party.
♦ The ever-growing ranks of unskilled and unemployed youth in Spain not only pose a challenge to the economy but are also threatening the fabric of Spanish society – a problem Madrid is only now beginning to address.
♦ Voter outrage sparks José Manuel Barroso’s concerns about eurozone belt-tightening.
♦ Paul Kevin Curtis, who has been cleared in the ricin letter investigation, might have been framed, according to his lawyer. James Everett Dutschke, another entertainer, is now the focus of the investigation and it seems that the two men’s lives have coincided before.
♦ Thirteen female corrections officers were charged with federal racketeering at a state prison in Maryland, US. “The indictment described a jailhouse seemingly out of control. Four corrections officers became pregnant by one inmate. Two of them got tattoos of the inmate’s first name, Tavon — one on her neck, the other on a wrist.”
♦The 200m emails to be kept in the George W. Bush Presidential Center are creating years worth of work for archivists, a growing problem for the U.S. National Archives and Records Administration, the federal agency that keeps the nation’s trove of historic documents.
On Tuesday, the editor of the Financial Times, Lionel Barber, gave the commencement address at Barcelona’s Esade Business School. His theme was the eurozone crisis – but he began with a story from the earlier, headier days of the new millenium, when the Spanish economy was displaying “sustained dynamism”, in the words of the IMF.
In the summer of 2001, I interviewed José María Aznar and Silvio Berlusconi in successive weeks. Aznar was at the height of his powers. He had just successfully pressed for better budget terms at an EU summit, and boasted of quietly smoking a fat cigar until Chancellor Schroeder and others came round to his demands.
A few weeks later I was in Rome at Silvio Berlusconi’s private villa next to the Spanish steps. Inside, the roses were purple, the ceilings were high and the women statuesque. When I insisted in conducting my interview in French, il Cavaliere responded by crooning an old Edith Piaf song. Then I mentioned I had just interviewed his old friend Aznar at the Moncloa. “Well,” said Mr Berlusconi, suddenly serious, “Spain is a great success story. Madrid is one of the great cities, bustling with commerce and trade. If Italy does not reform, it will be overtaken by Spain in the next decade.”
The EU summit that begins on Thursday has enjoyed less fanfare – and less frenzied speculation over its potential outcomes – than many others. But don’t be fooled: it still matters. Here’s why.
We’ve got plenty on the US, as the election draws ever closer, but Spain’s woes are also attracting a great deal of attention:
Here’s what we’ve been chatting about after the weekend:
We’ve enjoyed reading these articles from all over the world:
Welcome to the FT’s live blog assessing the outcome of an extraordinarily dramatic night in Brussels. Markets have responded powerfully with sharp moves in equities, bonds and currencies after EU leaders agreed measures that will see a shift towards central supervision of eurozone banks in exchange for short-term support on Italian and Spanish sovereign debt. We will bring you details of the overnight deal and trace reaction.
18.10: We’re wrapping up the live blog after a day that started very early in Brussels. The action is now shifting over to Berlin, where the German parliament will hold a key vote to approve the ESM and the previously agreed fiscal discipline treaty. For updates on the Bundestag this evening from our own Gerrit Wiesmann, please follow FT.com.
In the meantime, here are some of the highlights from a busy day following the summit’s late-night deal.