

Currently released so far... 6230 / 251,287
Articles
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Amsterdam
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lagos
Mission USNATO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Tijuana
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
ASEC
AF
AE
AR
AORC
AJ
AU
AM
ABLD
AL
AMGT
ASUP
AFIN
APER
ABUD
AVERY
APCS
AEMR
ADCO
APECO
ASIG
AG
AA
AS
AFFAIRS
ASECKFRDCVISKIRFPHUMSMIGEG
AMED
AO
ACOA
AX
AROC
ATFN
ASEAN
AFGHANISTAN
AFU
AER
ALOW
AODE
ATRN
AID
AC
AGMT
CH
CO
CS
CE
CU
CLINTON
CG
CVIS
CMGT
CI
CJAN
CF
COM
CASC
CA
CBW
CM
CDG
CR
COUNTER
CD
CWC
CKGR
CN
CPAS
CJUS
CV
CONS
CT
CY
COUNTERTERRORISM
CIA
CACM
CDB
CAN
COE
COUNTRY
CLEARANCE
CACS
CONDOLEEZZA
CARSON
CL
CIS
CODEL
CTM
CB
ECON
EFIN
EAIR
EUN
EINV
ENRG
EG
ETRD
EPET
ETTC
ELAB
EU
ER
ET
EAGR
ECPS
ECIN
ELTN
EAID
EMIN
EWWT
EFIS
EIND
EC
ES
EN
EI
ENVR
ENGR
ENIV
EUNCH
ENVI
ETRDEINVECINPGOVCS
ELN
EZ
EXTERNAL
EINVECONSENVCSJA
EINT
EUR
ECINECONCS
ENNP
EFINECONCS
EK
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
EUC
EREL
ECA
ENERG
ENGY
ETRO
EFTA
ECONCS
ECONOMICS
ECONEFIN
EINVETC
EINN
ESA
ETC
ETRDEINVTINTCS
ESENV
ETRDECONWTOCS
IN
IC
IR
IZ
IS
IAEA
IT
ICTY
IO
IA
IWC
ID
ICRC
ILC
INTELSAT
IMO
ISRAELI
IACI
ILO
ITRA
IBRD
IMF
ICJ
ICAO
ITALY
ITALIAN
IRAQI
INTERPOL
IV
IQ
IPR
INRB
ITPHUM
IIP
IL
INR
ITPGOV
IZPREL
IRC
INRA
INRO
IRAJ
IEFIN
IF
KDEM
KCRM
KJUS
KTIA
KWBG
KPAL
KIPR
KTIP
KE
KNNP
KGHG
KICC
KV
KTFN
KU
KCFE
KDRG
KWMN
KSCA
KGIC
KCOR
KFRD
KPKO
KSUM
KPRP
KPAO
KBCT
KIRF
KCFC
KISL
KREC
KSPR
KHIV
KBIO
KMCA
KMPI
KFLU
KSTH
KBTR
KS
KOMC
KOMS
KSEP
KPRV
KFLO
KHLS
KN
KWWMN
KUNR
KLIG
KSTC
KZ
KG
KRAD
KOLY
KTBT
KTDB
KOCI
KAWK
KCIP
KNPP
KWAC
KMDR
KAWC
KIDE
KSAF
KX
KWMNCS
KNEI
KCRS
KVPR
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KACT
KO
KFSC
KR
KPWR
KMIG
KSEC
KIFR
KDEMAF
KFIN
KGCC
KPIN
KPLS
KIRC
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KGIT
KBTS
KERG
KWMM
KRVC
KNSD
KVIR
KNUP
KTER
KDDG
KHSA
KMRS
KHDP
KTLA
KPAK
KNAR
KREL
KPAI
KTEX
KCOM
KNNPMNUC
KPOA
KRFD
KHUM
KDEV
KNUC
MOPS
MARR
MASS
MNUC
MO
MX
MCAP
ML
MTCRE
MR
MP
MY
MU
MIL
MAR
MC
MRCRE
MTRE
MA
MEPI
MV
MPOS
MD
MZ
MEPP
MOPPS
MAPP
MASC
MT
MERCOSUR
MK
MDC
MI
MAPS
MCC
MASSMNUC
MQADHAFI
MUCN
MTCR
MG
OREP
OVIP
OFDP
ODIP
OPDC
OAS
OTRA
OSCE
OECD
OIIP
OEXC
OPCW
OPIC
OPRC
OVP
OSCI
OTR
OSAC
OIC
OFFICIALS
OIE
PHUM
PREL
PGOV
PREF
PTER
PARM
PBTS
PINR
PINS
PHSA
PK
POL
PM
PINT
PE
PINF
PEL
PA
PARMS
PO
PLN
PROP
PALESTINIAN
PAO
PL
POV
PG
POLITICS
PEPR
PSI
PSOE
PU
POLITICAL
PARTIES
PBIO
PECON
PAK
POGOV
PINL
PKFK
PMIL
PY
PFOR
PHALANAGE
PARTY
PRAM
PMAR
PGOVLO
PUNE
PORG
PHUMPREL
PF
POLINT
PHUS
PGOC
PNR
PGGV
PNAT
PGOVE
PRGOV
PRL
PROV
PTERE
PGOF
PHUMBA
SENV
SY
SZ
SOCI
SO
SR
SNAR
SA
SP
SW
SMIG
SU
SCUL
SC
SAN
SN
SL
SG
SYR
SEVN
SF
SI
STEINBERG
SIPRS
SH
SNARCS
SOFA
SANC
SHUM
SK
ST
TRGY
TU
TBIO
TH
TS
TSPL
TT
TPHY
TSPA
TI
TK
TIP
TERRORISM
TZ
TX
TW
TD
TP
TC
TO
TNGD
TINT
TRSY
TR
TFIN
TURKEY
UK
UNGA
UN
UNHRC
UNMIK
UNO
UZ
UNSC
UP
UG
UNHCR
UNDC
US
UNAUS
USTR
UV
UNEP
UY
UNESCO
USUN
UAE
USEU
UNDP
UNCHS
UNVIE
UNCHC
UE
UNDESCO
USAID
Browse by classification
Community resources
courage is contagious
Viewing cable 08MADRID707, ZAPATERO ANNOUNCES MEASURES TO ADDRESS ECONOMIC
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08MADRID707.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
08MADRID707 | 2008-06-25 17:05 | 2010-12-16 12:12 | CONFIDENTIAL | Embassy Madrid |
VZCZCXRO3126
RR RUEHAG RUEHROV
DE RUEHMD #0707/01 1771724
ZNY CCCCC ZZH
R 251724Z JUN 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 4996
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAS/AMEMBASSY ALGIERS 4006
RUEHRB/AMEMBASSY RABAT 6103
RUEHLA/AMCONSUL BARCELONA 3479
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 MADRID 000707
SIPDIS
STATE PASS USTR
E.O. 12958: DECL: 06/25/2018
TAGS: ECON EFIN EINV PREL SP
SUBJECT: ZAPATERO ANNOUNCES MEASURES TO ADDRESS ECONOMIC
SITUATION, REACTION SKEPTICAL
REF: MADRID 443
MADRID 00000707 001.2 OF 002
Classified By: DCM Hugo Llorens for E.O. 12958 reasons 1.4(d),(e)
¶1. (C) Summary and Comment: On June 23, President Zapatero
acknowledged the economy's rapid deceleration, said growth in
2008 would be below 2 percent but would start to recover in
the second half of 2009, and announced 21 reforms. The
measures include spending cuts that are being perceived as an
attempt to show that the GOS is sharing the public's pain but
are not likely to have a significant impact. Most of the
other measures are structural reforms that, while they may
have positive effects in the medium term, are not likely to
address the immediate slowdown. Because of a perception that
Zapatero has downplayed the severity of the economic
situation, initial public reaction was skeptical. As the GOS
cannot do much in the short term about high fuel or food
prices or the housing slowdown and is locked in the monetary
straightjacket of the ECB, nothing it does is likely to
satisfy the public. The next year or two could be unpleasant
for the government, as well as for Spaniards. End Summary
and Comment.
¶2. (U) In his an annual state of the economy report on June
23, President Zapatero acknowledged that the Spanish economy
was indeed suffering a rapid de-acceleration, with growth now
expected to be less than 2 percent for 2008 as a whole,
though it would start to recover in the second half of 2009.
Despite this admission, Zapatero assured the public that
Spain was in a strong position to confront the situation and
would overcome this slowdown by the second half of 2009.
Zapatero refrained from using the word "crisis," a term which
has been used frequently by the media and by opposition
Partido Popular leaders to describe the current economic
situation and criticize the government.
¶3. (U) During the speech, Zapatero presented a package of 21
short-, mid-, and long-term measures to improve Spain's
competitiveness and address the economic situation. They
included measures to confront the deceleration, austerity
measures, and structural reforms. A list follows:
Measures to Address the Deceleration
¶1. More credit lines to small businesses and
government-protected housing;
¶2. Encouraging renovation of homes and hotels;
¶3. Establishment of a new framework for home renovation;
¶4. Credit and subsidies for consumers who purchase
fuel-efficient vehicles;
Austerity Measures
¶5. Reduce the number of new government jobs in 2009 from
35,000 to 10,000;
¶6. Reduce current spending by at least 20 million euros
immediately;
¶7. Freeze salaries of high-level officials;
Structural Reforms
¶8. Increase investment in infrastructure and transportation;
¶9. Implement a plan for professional training and development;
¶10. Increase the amount of cargo transported by rail;
¶11. Allowing Autonomous Communities and private capital to
participate in airport management;
¶12. Port law to reduce trade restrictions and facilitate
trade;
¶13. Energy efficiency and renewable energy law;
¶14. Agreement with France to double the electricity
interconnections;
¶15. Increase access to wide-band telecommunications services;
¶16. Improve the quality and reliability of wide-band services;
¶17. Law to improve competition in the service sector;
¶18. New framework for professional services;
¶19. Reduction of business registration and notarial fees;
¶20. Facilitate the creation of businesses within 24 hours;
¶21. Reduce administrative burdens for businesses.
¶4. (U) These 21 measures come on the heels of the June 13
approval by the Council of Ministers of a draft law that
would accelerate value-added tax returns and eliminate wealth
taxes in 2009, with a combined expansionary impact of 7.8
billion euros in 2009. This was the government's second
major stimulus effort since Zapatero's reelection in April.
The first was the April 18 package (reftel) that included the
400 euro refunds promised in the campaign and is expected to
MADRID 00000707 002.2 OF 002
have a combined expansionary impact of 10 billion euros in
2008 and 8 billion in 2009. Assuming the legislature
cooperates as expected, the total stimulus from both sets of
measures will be about 1 percent of GDP in 2008 and 1.6
percent in 2009.
¶5. (C) Comment: Although the structural reforms could
eventually increase productivity, many of the measures
Zapatero announced will have little impact in the short term,
several are far from being implemented, and many were already
planned. In terms of macroeconomic impact, it does not look
very coherent for the government to announce spending cuts
just 10 days after approving an expansionary stimulus
program. However, the spending cuts are expected to save
only 250 million euros in 2008 and 2009 combined, a
contraction dwarfed by the almost 26 billion euro
expansionary impact of the two stimulus packages. Second
Vice President and Finance Minister Solbes (who is reported
to have not been involved in preparation of the package) has
characterized the June 23 austerity measures as
psychological. Initial public reactions suggested that they
are seen as politically rather than economically motivated,
to give an example of the government sharing in the hard
times and taking action. Even the structural reforms do not
address labor laws, which many economists consider an
important target for reform.
¶6. (C) Comment continued: It is not clear that the GOS has
policy options that would enable it to satisfy public wishes.
The budget surplus of previous years that it had said gave
it maneuvering room is gone as a result of lower tax
receipts. Inflation is stubbornly high, and unemployment is
expected to pass 10 percent and continue rising into next
year. There will be no expansionary monetary policy in line
with the GOS, fiscal stimulus as long as the European
Central Bank keeps interest rates high to fight inflation.
The average Spaniard is experiencing the effects of higher
food and fuel prices every day and is well aware of the
collapse in residential construction. Regular news of real
or threatened strikes by various interest groups to protest
rising prices or other economic concerns heightens the
awareness of the economic difficulties faced around the
country.
¶7. (C) Comment continued: If the media and the public
believed Zapatero's statement that the economy will start to
recover in the second half of next year, the mood might be
different. However, at the moment his and the GOS'
credibility on economic issues is low. Over the last several
months, he and his economic team have regularly revised
downward their forecasts, as previous projections -- whether
for how low growth would drop, when it would rebound, how
rapidly unemployment would increase, or when inflation would
start to decline -- proved too optimistic. There is a
widespread perception that Zapatero and the GOS intentionally
downplayed the severity of the situation during the campaign
for the April 9 elections.
¶8. (C) Comment continued: Perhaps because he does not want
to damage already shaky consumer confidence, he and other
officials have refused to use the word "crisis." While the
current situation may not be a crisis in the strictest sense
of the word, it is certainly a difficult period, and
Zapatero's statements have given many the impression that he
is either intentionally downplaying the problem or does not
understand its severity. This speech appears to have been an
attempt to show that he understood the severity of the
situation and was taking action. However, since the GOS
cannot do much in the short term about high fuel or food
prices or the housing slowdown and does not have monetary
levers to stimulate the economy, it is not likely to satisfy
the public. It could be an unpleasant next year or two for
the government, as well as for Spaniards.
AGUIRRE