Dawn

Dawn

Monday, June 14, 2010

Spain’s presidency of the EU is about to end and the reins will be handed over to Belgium. Which is a tad ironic as the host of the major EU institutions seems to be finally breaking up into its constituent French and Dutch-speaking parts. But doubtless each of these will be only too pleased to remain part of an even larger agglomeration of linguistically discrete nations.

Talking of which . . . There was another interesting comment about the English in a Spanish football report today. Referring to the reaction in Britain to England’s poor performance on Saturday and to the pillorying of the goalkeeper for his gaffe, the writer claims that no other people flagellates itself as much as the English when hopes are dashed. Of course, this may have something to do with these hopes being ridiculously overblown in the first place.

Which reminds me . . . When the previously-cited writer suggested the English were the most xenophobic people in Europe, perhaps he was confusing this with euroscepticism. An easy mistake, I guess.

But back to Spain and just to counter the (alleged) relentless barrage of negativity from me, here’s a rather positive blog post on Galicia. God knows why there are the references to luxury goods in the text. Probably some marketing trick. But it’s interesting – to me at least - that Google Reader picks up this blog but not mine.

Pontevedra city is to become the first in Spain where the speed limit nowhere exceeds 30kph (20mph). Of course, in most city streets this ranks as an optimistic aspiration rather than a limit; but here on the steep hill where I live, it’s only achievable by descending with your foot constantly on the brake. And by driving all the way up in second gear. Which strikes me as nonsensical. But I would say that, wouldn’t I?

Finally . . . Here’s an interesting comment to a post by Charles Butler over at IBEX Salad. It’s a useful insight for those of us struggling to understand exactly how the Spanish economy really works:-

Foreign investors/journalists etc. don’t understand the vertical distribution of power in Spain. Behind a formal democracy is hidden a political party elite-driven country with the King at the top of this distribution of power.

What I’m trying to say is that maybe it looks like chaos is reigning, but in fact, behind that chaos there is a vertical distribution of the power, which can make things happen very quickly.

For example. In the U.S. bailout the vote failed in Congress, but in the social spending cut in Spain, the vote was approved. In a lack of democracy environment things can happen, even if it appears by only 1 vote.

People don’t understand how Spain works. Crisis? Of course, but Spain can go to 30% of official unemployment rate and still be alive. The shadow economy is very, very big and has a better answer to troubled times than the real economy. Why? Because there are no stupid government rules, and the Shadow Economy adapts very well to reality. In fact the Shadow Economy works like a real non-regulated economy. So it can accept a crisis quicker and adapt to booms better. Just as in the case of the people who pay 50% lower salaries in illegal money.

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