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(01/08/10) -

Spain at the Helm of the European Union

Another country dealing with economic disaster takes over the EU presidency.
Gabriela Perdomo – With new rules commanding the leadership structure of the European Union (EU), the need for six-month rotating presidencies was supposed to have ended. Yet, on Jan. 1, Spain became the latest country to preside over the 27-member bloc, even as a new EU president, the Belgian Herman van Rompuy, and a new foreign policy chief, Britain’s Catherine Ashton, assumed their roles last Dec. 1 as part of the implementation of the Lisbon Treaty.

Gabriela Perdomo – With new rules commanding the leadership structure of the European Union (EU), the need for six-month rotating presidencies was supposed to have ended. Yet, on Jan. 1, Spain became the latest country to preside over the 27-member bloc, even as a new EU president, the Belgian Herman van Rompuy, and a new foreign policy chief, Britain’s Catherine Ashton, assumed their roles last Dec. 1 as part of the implementation of the Lisbon Treaty.

The unclear role that Spain is expected to fulfill over the next six months as EU leader could be either a blessing or a curse for the bloc. Spain’s EU presidency follows a term by Sweden, preceded by the embarrassing performance of the Czech Republic in the first half of 2009, which saw the collapse of the Czech government half way through the country’s mandate.

As was the case with the Eastern European nation, the EU is now run by a country handling a calamitous economic situation. With little credibility on the subject—unemployment is just shy of 20 per cent, double the EU average—Spain is supposed to show leadership on economic matters and table proposals for the whole group’s recovery.

Right off the bat, it does not look like Spain could offer much. The country, led since 2004 by José Luis Rodríguez Zapatero of the Socialist Worker’s Party (PSOE), has gone from economic boom to bust. While most European nations were hit by the tail of an economic storm that originated in the United States in 2007, Spain suffered its own real-estate crash and started suffering before the rest of the bloc was even hit.

Given the sorry state of affairs, the expectations on Zapatero’s performance are low. However, the president of the Spanish government could deliver some surprises. As his mandate continues to suffer at home, Zapatero sounds determined to prove his critics wrong and is under pressure to demonstrate his leadership skills and his credentials as a progressive European leader.

The EU presidency is of great importance for Zapatero. Spain is generally a strong supporter of the bloc, and Spaniards care about the union more than the Swedes or, arguably, the Czechs. The prime minister still has much to lose at home—despite the terrible crisis, his approval ratings are not nearing the bottom.

In the 2008 election, Zapatero managed to stay in office after a terrible two-year span, if only by a small margin. His political clout has declined since then. The most recent opinion poll, conducted by Sigma Dos, shows Zapatero’s rating at 4.53 points on a scale of one to 10. Political apathy and a sense of pessimism are widespread. The rating of Mariano Rajoy, leader of the opposition Popular Party (PP), stands at 4.18 points according to the same poll. The opposition PP, which was unable to extend its run in government after the departure of José María Aznar in 2004, now holds a five-point lead over the PSOE.

Zapatero cannot afford a poor performance over the next six months leading the EU. And he should be given the benefit of the doubt. Spain’s woes cannot all be blamed on the PSOE-led administration. The spectacular burst of Spain’s real-estate bubble happened in the same way that in the United States. There is little evidence to suggest that Rajoy and the PP would have handled the housing market any differently. Before the crisis hit, Spain was cited by international economists of all stripes as a poster boy of rapid growth and prosperity. Clearly, Zapatero has been the man at the helm of Spain’s government during this period, and the greatest burden of responsibility lies—as it should—in his hands. But EU economic policy should also bare some of the burden of guilt in the Spanish case. For most of the past two decades, Spain has bent over backwards to become a respectable member of the union by adhering to the EU’s economic advice.

The Spain of Zapatero deserves credit in other areas unrelated to the economy. For one thing, the PSOE paved the way for solid equality legislation, implementing women quotas in political parties and corporate boards and passing a bill to allow marriage and adoption by same-sex couples.

This month, Portugal—another staunchly Catholic nation—approved a bill allowing couples of the same sex to marry (the portion of the bill dealing with adoption was rejected). The Portuguese socialist government would not have succeeded were if not for the precedent set by Spain. Zapatero has also overseen progressive initiatives regarding the curbing of greenhouse gas emissions.

It is unclear whether Madrid will be able to accomplish much under the new, post-Lisbon Treaty leadership rules for the EU. It would be a pity if the Spanish government is not allowed to go beyond just rhetoric. If given the chance, Zapatero and his team could contribute a great deal to the union.

There are troubling signs that this will not be the case. During a press conference offered by Zapatero, EU Council president Van Rompuy, and European Commission president Jose Manuel Durao Barroso today, a Spanish reporter asked: "Who of you should be called in case of emergency?" Zapatero responded: "Herman van Rompuy."