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The number of unemployed in Spain reaches 5.6 million people in April 2012. Finance Minister Guindos said the only bright spot was exports and a drop in the current account deficit which shows Spain's improving competitiveness: "This shows the Spanish economy is competitive, unlike some other European economies, thats the most important element of optimism for the future." The Spanish cabinet approved a Stability Program Report to be submitted to the European Union showing GDP growth of 0.2% in 2013 and 1.4% in 2014, following contraction of 1.7% in 2012, and unemployment falling slightly to 24.2% in 2013. Spain's government debt level is shown at 82.3% of GDP in 2013 declining to 81.5% in 2014.

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The IMF report on Italy in July 2012 says Italy faces another year of recession. Debt as a percentage of GDP is expected to reach 126% in 2013. One bright spot is that Italy is expected to post a primary surplus by 2013- that is government revenues will cover promised services, excluding interest payments on oustanding bonds of $2 trillion. Because of the recession small shocks could change the outlook says the IMF, and it emphasized the importance of the changes being made to the labor market and for improving competitiveness. These changes need to be implemented early because of elections expected in spring 2013. A key concern is borrowing rates which are near 7% for Italy and Spain. The European Stability Mechanism, the rescue fund, was authorized to make purchases of Italian and Spanish bonds in the June 2012 summit. The ESM becomes operational in the summer of 2012, after the German Constitutional Court makes its ruling about it being legal and after ratification by national governments....

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This editorial in the NYT calls for action from Germany for rescue efforts in the eurozone- for changes to the Greece austerity measures and direct recapitalization of Spanish banks- after the G-20 summit at Los Cabos in June 2012.

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Spain's economy contracted 0.3% in the fourth quarter of 2012, according to the Spanish central bank. Unemployment reached 23% in January, 2012. For workers under 25 years age the unemployment rate is 48.6%. The new government of prime minister, Mariano Rajoy, plans to pass labor reform legislation to give companies flexibility to hire new workers, lower dismissal costs and make hiring easier. The economic crisis has a larger effect say experts, because of rigid labor laws. This make it easier to layoff workers than adopt alternatives of lower wages, and which make firms hesitant to rehire. One example is higher dismissal costs- the cost of unfair dismissal is 45 days of pay for each year worked, and 20 days for fair dismissal, which is hard to prove under Spanish laws.

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Here Simon Jenkins in the Guardian looks at the situation in Spain, where independence from Spain for Catalonia, could lead to independence demands from other regions such as the Basque region. He says opposition to devolution of powers to Scotland in the 1980's in Britain led to the drive for independence in Scotland years later. He sees the Spanish government's strong response as not the best way to deal with the situation. A better way is to allow some form of self-rule for regions such as Scotland and Catalonia, enough self-rule to accomodate regional aspirations. He cites the example of Slovakia with peaceful separation as the alternative if no agreement is reached.

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German national soccer team coach Joachim Low has used 7 different defenders in the last 3 games as he tries to find a winning formula after replacing Hummels and Boateng, says this report in DW.com. He also replaced Thomas Muller and it will take some time before the German national team coach can find the new younger players to replace the old ones. This approach is not unique to Joachim Low alone as other national teams are also looking for younger players. The Spanish national team and the Portuguese national team have many younger players in an effort to bring new faces to the game who excel at soccer. Younger German players being called to play on the national team include Philipp Max, Robin Gosens, Nico Schulz, Mahmoud Dahoud, Nadiem Amiri, Florian Neuhaus, Jonas Hofmann. The only way to play other national teams who are bringing in younger players is for Low to tap into younger talent in Germany and let the process bring results.

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European banks borrowed 529 billion euros from the ECB in Feb. 2012 at interest rate of 1% for three years.This follows the lending by the ECB of 489 billion euros to European banks in December 2011. The total lending now exceeds $1 trillion under the European Central Bank's Long Term Financing Operation. It is designed to inject additional liquidity into the European banking system and shore up confidence in the economy. This time 800 banks applied for loans compared to the 523 banks in December. The actual amount of money going to banks is about 520 billion euros as many banks moved money from shorter term ECB loans to the three year loans under the Long Term Refinancing Operation. The operation helped bring down the borrowing rates on Italian and Spanish bonds- the rate on Italian 10 year bonds is down to 5.2% as of Feb. 28, 2012. Spanish and Italian banks were able to borrow at 1% from the ECB and buy Italian and Spanish bonds paying 5%. Intessa Sanpaolo bank in Italy doubled its borrowing to 24 billion euros. Smaller banks, including banks in Germany, participated in the February 2012 ECB lending, moving the number of banks up to 800 this time. VW's financing arm also borrowed under this operation so that it could provide credit to customers....

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France and Algeria see improving relations as a necessity and Macron visits Algeria on the 60th anniversary of its independence. About half a million civilians and soldiers died in the Algerian civil war that ended in 1962, 400,000 Algerians. Algerian estimates are higher. It was a trauma for France and for Algeria. De Gaulle pushed through Algerian independence against fierce opposition by 1962 using a referendum, with many assasination attempts on his life. Macron called for "looking back at the past with humility," to look back at the history long before the arrival of the French, and archives from both nations will be put together for an objective account of what happened. Macron has said that Algerians simply focused their hatred on French occupation since 1830 and Turkey whitewashed its own occupation of Algeria before 1830. The Ottoman Turks set up the Regency of Algiers in 1525 after defeating Spanish-Moroccan armies and Turks controlled the region till the French took over in 1830.  Macron says Algeria's identity as a separate nation was set only after French rule. ...

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50 years from 1975 and the passing away of the 40 year Franco era, and 44 years from 1981 and joining the European Economic Community Spain is still finding its way. This report from Spain in The Times of London looks at the period before 1975 when Spanish politicians of every party came together to support the transition to democracy and becoming part of the European Union. He looks with dismay at the fractious nature of today's politics and the frequent name calling, Socialists under Sanchez and the Partido Popular, Vox party, Podemos, failing to agree on how to handle the Catalonian independence movement. Those who supported autonomy for Catalonia and the Basque region in 1975 did this not as a pathway to the breakup of Spain, but to give room for regional aspirations and difference in language and traditions within the federal union of Spain. Much of this was forgotten in the politics of Arturo Mas and other politicians from Catalonia. Catalonia is now run by the Socialist party, elsewhere in Spain  the Vox party and Partido Popular in Andalusia and the Madrid region remain popular. The financial debt and housing crisis in Spain, the pandemic and other economic problems have affected Spain similar to the rest of Europe, creating problems in the economy which only now have been overcome.  ...

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Italy raised 18 billion euros in a record auction on Oct. 18, 2012, meeting its needs for the rest of the year. Italy's yield dropped to 4.64% on Oct 18. Spain raised 4.6 billion euros at 5.32%. Italy sold most of the BTP Italia bonds to Italian citizens with a 4 year bond linked to Italian inflation and designed for Italian retail investors with a new eBay type internet platform, including a loyalty premium of extra 40 basis points. Italian retail investors have 8 trillion euros in net private wealth and household wealth in Italy is more than 4 times the sovereign debt, according to the Bank of Italy. This is a big difference compared to Spain, because the interest on the bonds remains in Italy for consumption and investment. Spanish households are highly indebted after the housing bubble.

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Proposed ideas being considered at the EU headquarters in Brussels include the European bailout fund, the European Financial Stability Facility (EFSF), being made a bank with funding from the European Central Bank. The EFSF would be able to buy the bonds of Spain and Italy in primary and secondary markets alongside private buyers. As an alternative the ECB would be able to buy Spanish and Italian bonds directly. Here the problem is keeping private investors in the market given the large financial needs of Spain and Italy. In the restructuring of Greece's government bonds the ECB took the position that it would subordinate the claims of private investors in Greece's government bonds and not take loss. Concerns of private investors could be addressed by the eurozone governments giving an explicit indemnity to the ECB to cover any losses suffered in the purchase of Spanish and Italian bonds. Both steps, the direct purchase of Spain's and Italy's bonds by the ECB or through the EFSF would mean doing something that is not in the ECB's charter- the financing of government debt- and would be done cautiously and only in a crisis situation. The caution would also be motivated by the need to ensure there is action to improve the competitiveness of Spain, Italy and other eurozone countries through specific measures, and no backtracking bygovernments....

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The loan-to-deposit ratios on average for European banks of over 110% are much higher than the average in the U.S. of about 78%, according to analysts. The loan-to-deposit ratios for Spanish and Italian banks are much higher, with 160% for Bankia. If Spain leaves the eurozone and places a moratorium on loan payments the Greek loans on the books of France's banks in Greece would be in default, especially Credit Agricole. The French banks would suffer an estimated loss of 20 billion euros, and German banks 4.5 billion euros. German banks have been more aggressive in reducing their loan protfolios at risk than French banks during 2010-2012, hence their smaller exposure.

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Landon Thomas Jr. looks at the situation in Spain and finds it hard not to conclude that austerity policies are not working in the absence of economic growth, and increasing unemployment. Unemployment in Spain is at 24% and growing. Deficit reduction is likely to take longer with the deteriorating economic outlook. Spain's economy minister, Luis de Guindos has announced Spain plans to increase consumer taxes in 2013, including the VAT, which is currently at 18%. This would further depress consumer spending. Bondholders sense dangers from lack of economic growth and competitiveness, as much as they sense dangers from uncontrolled regional spending. As a result investors are leaving Spain. According to analysts at Credit Agricole Cheuvreux in Madrid, 100 billion euros (132 billion) have left Spain, including distress sales- coming from insurance companies, pension and sovereign wealth funds reducing holdings of Spanish bonds.

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American singer Linda Ronstadt looks back to her roots in the Rio Sonora region of Mexico in this AARP excerpt about her years growing up in that region before her father moved to Tucson, Arizona. Her album Canciones de mi Padre, is the best selling non English music album in the US of all time. Her book is called- Feels Like Home- Song for the Sonoran Borderlands. It looks at the emotional and physical links between the US southwest and Mexico and the hold that this region has on the popular imagination. She says that wherever she has lived, wherever she has travelled, her soul is always winging it down the road, to the land south of the border. A stretch of desert she calls her foothold to the world. Today millions of Mexican Americans share this heritage and this kind of genetic memory. When the Spanish landed in the 1500's there was no border. The land and its physical aspects have not changed through waves of immigration- this story in the AARP magazine shows the agaves in the backdrop of the Huachuca mountains. Apple Music has Ronstadt's album and The Arbolitas, a song of the trees, etched in the Sonoran sunlight.  ...

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What is the oldest man alive like. Bob Weighton was presented with his certificate by the Guinness World Records this week. He lives in a assisted living home and is self isolating. Here is someone who has been through the 1918-20 Spanish flu pandemic that took millions of lives all over the world. What is he like? He was a professor of Marine Engineering at the City University of London till he retired at age 65 in 1973. Weighton says he is very pleased he was able to live so long and make so many friends. He has had serious medical operations but nothing he has experienced is like the coronavirus and self-isolation. He calls it "bizarre." But his advice is that there is nothing you can do about this so you might as well do what you can and  never mind about what you can't. He has 3 children, 10 grandchildren and 25 great grand children. He and wife Agnes traveled and worked around the world then settled back in the UK. She and his wife Agnes who passed away in 1993 volunteered in retirement as marraige counselors and helped youth groups in Alton.  ...

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The Economist calls for more attention to efforts to promote growth in Europe and the U.S. in 2011. It describes as nonsense the policy of the European Central Bank to increase interest rates at a time when most European economies are struggling to increase growth. And more so when the ECB is busy buying Spanish and Italian bonds to support Spain and Italy.

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Jonathan Zimmerman teaches education and history at the University of Pennsylvania. Here he looks at the origins of the term "people of color" and to what extent there are changes in America that relate to the relevance of the use of the term in American vocabulary. He says the "people of color" term in our vocabulary was based on the idea that America was a white supremacist society that would not give average people, disadvantaged people a fair chance for a better life, whether they be the 48 million black people, 62 million Spanish speaking people, or the 25 million Asian people. To a large extent as America moves into the middle of the 21st century most Americans see themselves as part of the creation of the Modern World, with science and technology at its core.  Even Spain which early in the 16th century settled this continent, for two centuries lost its place in the Modern World created in Northern Europe after the Renaissance, falling into poverty, then recovered its origins when it joined the modern world in the 1970's by joining the European Union. A science museum  financed with EU funds in the ancient city of Valencia, Spain, brings Spanish children in every day to know Spain's own achievements in science and the advancing world of technology. ...

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With only 44% of Catalan people supporting independence and 48% opposed there is considerable division in the Catalan region about independence from Spain. The WSJ looks at different neighborhoods in Barcelona some working class and others more affluent and sees a sharp division along lines of class, age and language. People in the working class neighborhoods of Ciutat Meridiana are opposed to separation from Spain. The independence movement is mostly popular among younger, middle class and Catalan speaking people. Meridiana in northern Barcelona is one of the poorest neighborhoods. In the hip central neighborhood of Gracia with leafy squares dotted with art galleries and vegan restaurants the pro-separatist movement has major support. Support for independence is highest under age 25 and declines with age and is lowest for people at 65 years. More popular with middle class and less with people earning less than 1300 euros. Today Spain has a constitution that gives greater autonomy to individual regions such as Galicia, Basque and Catalan regions that have their own language and traditions. This was suppressed during dictator Franco's rule after the Spanish civil war in the 1930's. The Spanish constitution was written after Franco's death and ratified under King Carlos in 1978 providing freedom with self-government for all nationalities and regions, and an unusual degree of autonomy.  Poorer people in Barcelona feel the young people supporting separation are spoiled brats and dismiss charges that the state is fascist as a lack of knowledge of what fascism really is.  As the division and dispute drags on following the 2017 referendum that was declared unconstitutional, support for independence is declining, as reported in the Guardian recently.  All this has hurt the Catalan economy and foreign investment adding an economic dimension to this as Catalonia is now seeing growth lower than the national growth rate in Spain. In addition to this the new socialist government of Pedro Sanchez and some Catalan separatist parties are supporting new negotiations to address Catalan grievance. Catalans have felt that they are not getting a fair share of revenues that can be invested in housing, health and other services, that they are giving more in tax revenues than they are receiving. The 2009 financial crisis has also affected Catalonia in ways that increased support for an independent state as Catalonia was growing more than the rest of Spain at that time.  ...

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The candidates being considered for Governor of the Bank of England to succeed Mervyn King by a four person panel at Treasury are- Mr. Tucker, the deputy governor, Mr. Burns who heads Spanish bank Santander's UK operations, Mr. Turner, the chairman of the FSA, and Mr. Vickers of the Vickers commission on banking, a former Bank of England economist. Mervyn King retires in June 2013.

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U.S. Supreme Court Justice Sotomayor describes her life long struggle with diabetes and living in a Spanish enclave in South Bronx project housing with high alcoholism and drug use in the neighborhood. Both her parents were from Puerto Rico and her mother was a nurse. Her personal memoir is called "My Beloved World," is intended to give hope to other children struggling in similiar circumstances.

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Raphael Minder points out one episode in the life of Emilio Botin that shows how intertwined Spain and Santander had become. During the period when Spain took EU help after the collapse of Bankia bank in 2012 there was pressure on Spain to take a full government bailout. Finance minister Guindos says it was Botin who called him at that time and told him: "You know what you have to do and I will back you up." Botin's advice to the Spanish government was to resist the pressure. Botin expanded what was a family bank based in Santander in Northern Spain, through a series of successful acquisitions. He had a rare intuitive sense for timing of acquisitions, going into Brazil around the time candidate Lula of the Workers Party was elected president, with considerable uncertainty about how financial markets would respond to the election. About a quarter of the bank's profit now comes from Brazil. Besides Brazil Santander has commercial banking presence in Britain and the U.S., taking a bank that had 20 billion euros in assets in 1998 to 1.1 trillion euros by 2013, which is about the value of Spain's GDP....

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Simon Nixon points to two large capital gaps Spain's government faces for Bankia. Spain was not prepared for the events of the last month as it took control of Bankia. The agreement to convert 4.5 billion of preference shares into equity gives it 100% of Bankia parent, Banco Financiero y de Ahorros, and 45% of Bankia. The capital gaps Spain faces for Bankia comes from expected loan losses which it has been slow to deal with. BFA-Bankia's real estate loan losses are estimated at 52 billion euros. Capital provisions for this are only 11%. J.P. Morgan estimates another 4.9 billion euros will be needed under new government rules. But these rules do not reflect all the losses if real estate loans are written off and and other loans are correctly shown as nonperforming, and other corporate loan provisions are increased. When this is done total losses would in reality be about 12% of the 190 billion euro loans at BFA-Bankia or 22.8 billion euros, according to experts. To correctly deal with this would require $15 billion euros, in addition to the 4.9 billion euros, for a total of 19.9 billion euros. The other capital gap comes from BFA's capital carried on books at 12 billion euros, the pre-IPO value. This has been shrinking rapidly to 5.5 billion euros at 2011 end, and is now down to 2.8 billion euros. This could mean another capital gap of 5 billion euros, depending on to whether shareholders are wiped out. Bankia has 350,000 private shareholders and it will be important to maintain depositor confidence. The total is close to 25 billion euros in capital gap for BFA-Bankia that the Spanish government must face up to quickly. It does not stop there because there are other cajas savings banks and other banks that will have to be taken into account- too large a loss would mean losing market confidence and poorer access to financial markets. ...

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Tourism is boosting the economies of southern Europe. The tourist economy is ultra competitive in places such as Lisbon and Madrid because the  debt crisis of Spain, Portugal, Greece has led to devaluing their currencies with the US dollar. There are more American tourists in Portugal than Spanish tourists who are attracted by lower cost vacations. Europe now generates $500 million dollars from tourism one third of total tourist dollars worldwide. Portugal's economy is growing at 8%. This WSJ report looks at tourism in Portugal. It also raises questions about Southern Europe's overdependence on tourism industry which is cyclical.

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Spanish footballer Andres Iniesta retires at 40 years age in October 2024. He is Spain's most loved footballer for his humility and his skills.

Another loved footballer Argentina's Lionel Messi says of Iniesta-

“One of the most magical teammates and one of those who I most enjoyed playing together, Andrés Iniesta, the ball will miss you and so will we! I wish you all the best, you are a phenomenon."

Like Messi Iniesta is about 5-7 - 5-8 in height. Yet their speed with the ball was always amazing.

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Mariano Rajoy, leader of the Partido Popular, becomes the new prime minister of Spain, as his party wins 186 seats in the 350 member parliament. The Socialist party of outgoing prime minister Zapatero won 110 seats, which is down from the 169 seats it had in the previous parliament. The Socialists won elections in 2004 and 2008, when the Spanish economy was growing at 3%. This gives Rajoy and the Partido Popular an absolute majority in parliament; which it will need to take stronger measures than were taken by the Zapatero administration to resolve the debt situation with the cajas savings banks, and make other changes to get the economy growing again. Rajoy told the Spanish people that Spain needed to make a "common effort" to face the "most difficult economic situation that Spain has faced in the past 30 years." Referring to the general feeling in Spain that in the waning days of the Zapatero administration Spain had appeared to have no voice in the EU negotiations, Rajoy said: Spain's voice "needs to be respected in Brussels. We will stop being a problem and instead form part of the solution." ...