Currently released so far... 5268 / 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
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 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 Kampala
Embassy Kabul
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 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
USUN New York
USEU Brussels
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Browse by tag
AF
ASEC
AR
AORC
AJ
AM
AMGT
AE
AU
AGMT
AG
AS
AFIN
APER
ABUD
ATRN
AL
AEMR
ACOA
AO
AX
AMED
ADCO
AODE
AFFAIRS
AC
ASIG
ABLD
AA
AFU
ASUP
AROC
ATFN
AVERY
APCS
AER
ASECKFRDCVISKIRFPHUMSMIGEG
AEC
APECO
CU
CO
CH
CDG
CIA
CACM
CDB
CI
CS
CVIS
CA
CBW
CASC
CD
CV
CMGT
CLINTON
CE
CJAN
CG
CF
CN
CAN
COUNTER
CIS
CM
CONDOLEEZZA
COE
CR
CY
CTM
COUNTRY
CLEARANCE
CPAS
CWC
CT
CKGR
CB
CACS
COM
CJUS
CARSON
CL
COUNTERTERRORISM
EG
ECON
ETTC
EFIN
EZ
ETRD
EUN
ELAB
EU
EINV
EAID
EMIN
ENRG
ECPS
EN
ER
ET
ES
EPET
EUC
EI
EAIR
EAGR
EIND
EWWT
ELTN
EREL
ECIN
EFIS
EINT
EC
ECONEFIN
ENVR
ECA
ELN
EFTA
EXTERNAL
EINVETC
ENIV
EINN
ENGR
EUR
ESA
ENERG
EK
ENGY
ETRO
ETRDEINVECINPGOVCS
ETRDEINVTINTCS
ENVI
ESENV
ELECTIONS
ECUN
EINVEFIN
ECIP
EINDETRD
IV
IR
IS
IZ
IAEA
IN
IT
ICTY
IQ
ICAO
INTERPOL
IPR
INRB
IRAJ
INRA
INRO
IO
IC
ID
IIP
ITPHUM
IWC
ISRAELI
IRAQI
ICRC
IMO
IF
ILC
IEFIN
INTELSAT
IL
IA
IBRD
IMF
INR
IRC
ITALY
ITALIAN
KGIC
KDEM
KTIP
KOMC
KNNP
KWBG
KU
KPAL
KGHG
KAWK
KISL
KPAO
KHLS
KSUM
KSPR
KJUS
KCRM
KGCC
KPIN
KDRG
KTFN
KG
KBIO
KHIV
KSCA
KN
KS
KCOR
KZ
KE
KFRD
KIPR
KPKO
KNUC
KMDR
KPLS
KOLY
KUNR
KIRF
KIRC
KACT
KRAD
KCOM
KMCA
KV
KHDP
KVPR
KDEV
KWMN
KMPI
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCFC
KTIA
KPRP
KAWC
KCIP
KCFE
KOCI
KTDB
KMRS
KLIG
KBCT
KICC
KGIT
KSTC
KPAK
KNEI
KSEP
KPOA
KFLU
KNUP
KNNPMNUC
KO
KTER
KHUM
KRFD
KBTR
KDDG
KWWMN
KFLO
KSAF
KBTS
KPRV
KNPP
KNAR
KWMM
KERG
KFIN
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KTBT
KCRS
KRVC
KSTH
KREL
KNSD
KTEX
KPAI
KHSA
KR
KPWR
KWAC
KMIG
KSEC
KIFR
KDEMAF
MOPS
MARR
MNUC
MX
MASS
MCAP
MO
MIL
MTCRE
ML
MR
MZ
MPOS
MOPPS
MTCR
MAPP
MU
MY
MA
MG
MASC
MCC
MEPP
MK
MTRE
MP
MDC
MAR
MEPI
MRCRE
MI
MT
MQADHAFI
MD
MAPS
MUCN
MASSMNUC
MERCOSUR
MC
OVIP
OPDC
OPRC
OIIP
OFFICIALS
OSAC
OAS
OEXC
ODIP
OREP
OFDP
OTRA
OSCE
OPIC
OECD
OPCW
OSCI
OIE
OIC
OTR
OVP
PARM
PREL
PTER
PHUM
PGOV
PINR
PINS
PREF
PK
PE
PBTS
POGOV
PROP
PINL
PL
POL
PBIO
PSOE
PHSA
PKFK
PO
PGOF
PA
PARMS
PORG
PM
PMIL
PTERE
PF
PALESTINIAN
PY
PGGV
PNR
POV
PAK
PAO
PFOR
PHALANAGE
PARTY
PRGOV
PNAT
PROV
PEL
PINF
PGOVE
POLINT
PRL
PRAM
PMAR
PGOVLO
PHUMBA
PHUS
PHUMPREL
POLITICS
PEPR
PSI
PINT
PU
POLITICAL
PARTIES
PECON
SOCI
SY
SENV
SA
SP
SNAR
SG
SCUL
SR
STEINBERG
SF
SW
SU
SL
SMIG
SO
SN
SHUM
SZ
SYR
ST
SANC
SC
SAN
SIPRS
SK
SH
SI
TS
TU
TX
TBIO
TW
TSPA
TH
TIP
TI
TRGY
TC
TR
TT
TERRORISM
TO
TFIN
TD
TSPL
TZ
TPHY
TK
TNGD
TINT
TRSY
TP
UK
UN
US
UNGA
UNSC
UNO
UNMIK
UV
UY
UP
UG
USEU
USUN
UZ
UNESCO
UE
UAE
UNEP
USTR
UNHCR
UNDP
UNHRC
USAID
UNCHS
UNAUS
UNCHC
Browse by classification
Community resources
courage is contagious
Viewing cable 04MADRID4777, POPULAR PARTY FORESEES ECONOMIC CHALLENGES AHEAD
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. #04MADRID4777.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
04MADRID4777 | 2004-12-20 17:05 | 2010-12-16 12:12 | CONFIDENTIAL | Embassy Madrid |
This record is a partial extract of the original cable. The full text of the original cable is not available.
201755Z Dec 04
C O N F I D E N T I A L SECTION 01 OF 02 MADRID 004777
SIPDIS
TREASURY PASS TRACI PHILLIPS
E.O. 12958: DECL: 12/19/2012
TAGS: ECON EFIN EAGR ETRD TBIO SP
SUBJECT: POPULAR PARTY FORESEES ECONOMIC CHALLENGES AHEAD
FOR SPAIN
Classified By: Economic Counselor Whitney Baird for reasons 1.4 (b) and
(d).
¶1. (C) Summary: The opposition Popular Party's Economic
Spokesperson in Parliament Miguel Arias Canete predicted 2005
would be a good year for Spain, but that beginning in 2006
Spain's economy would sour and imperil Spain's Socialist
government. He declared strong respect for Minister of
Economy and Finance Pedro Solbes and the economic team, but
noted that Solbes faces strong challenges in shepherding
Spain's budget and economy in a cabinet of more radical
political heavyweights. Arias Canete expressed sympathy with
respect to our biotech position, noting that he was a strong
proponent of biotechnology during his previous position as
Minister of Agriculture. He offered assistance with biotech
issues with Spanish deputies in the European Parliament. End
Summary.
Economic Outlook
----------------
¶2. (U) Arias Canete characterized Spain's 2005 economic
outlook as solid. He stated that the fiscal environment of
stable spending growth and balanced budget was a gift to the
Socialists (PSOE) from the previous Popular Party (PP)
government. However, he noted Spain's inflation rate of
about 1.3 percent higher than the EU average as an area of
concern. He also noted that since Spain was an EU member and
EU monetary policy was predicated on the sluggish German
economy, Spain would not be able to use monetary policy to
curb its inflation. Cheap interest rates have contributed to
the steep rise in Spanish housing prices in the past few
years.
¶3. (C) According to PP economic projections, although the
outlook for 2005 is "solid", Spain's economy will slow
significantly in 2006. Arias Canete believes a recession is
probable and that the PSOE government will be forced to call
early elections due to the resulting economic stress.
Minister Solbes and the Economic Team
-------------------------------------
¶4. (U) Arias Canete offered high praise for PSOE Minister of
Economy and Finance Pedro Solbes. He noted Solbes' personal
professional stature as a guardian of the European Monetary
Union treaties in Brussels and for bringing France and
Germany to court for breaking budget deficit rules. Arias
Canete believes Solbes, with his EU experience, is truly
committed to ensuring budgetary stability during his tenure.
¶5. (C) He was less certain, however, whether Minister Solbes
would be able to maintain the support of President Zapatero
and keep future efforts at increasing spending in line with
his budgetary standards. According to Arias Canete's
sources, Solbes is regularly opposed by the President's
economic policy advisor Miguel Sebastian. Sebastian
regularly announces new economic policy changes without
Solbes' comment. Solbes also faces challenges in Zapatero's
Cabinet. In the Spanish system, there are multiple cabinet
levels. The first meeting each week the Secretary of State's
meeting (note: equivalent to Deputies' Committee). According
to Arias Canete, Miguel Angel Fernandez Ordonez, the
Secretary of State for Economy and Budget is often
SIPDIS
outmaneuvered by Economic Advisor Miguel Sebastian at these
meetings. Minister Solbes is then forced to try to overcome
the decision of the Secretaries of State in the Council of
Ministers. Arias Canete is not sure Solbes will continue to
prevail in these battles, or that he will want to keep
fighting if the economy sours.
¶6. (C) Regarding rumors that Solbes might not finish his
entire term, Arias Canete noted that Solbes is a man of his
word and that he is likely to keep his promise and serve
throughout this government. However, if in future budgets
the government pushes spending to a deficit level beyond 3
percent, breaking the EMU standards, Mr. Solbes might
consider resignation. Arias Canete noted (somewhat jokingly)
that he would do everything he could to push Solbes out of
office, because any PSOE replacement would be a much easier
political target for the PP.
Economic Reform on Hold
-----------------------
¶7. (C) Arias Canete mentioned several areas where economic
reform was necessary, but is convinced that the Socialist
government is unable or unwilling to carry through. The key
area for reform is the labor market. Arias Canete argued
that the link between inflation and wages in Spain without
any correlation to productivity needs to be broken. He also
mentioned the need to improve competition in the marketplace,
especially in telecoms and energy. Though the economic team
may well support many of these changes, Arias Canete does not
believe they will get much traction in the current
government. He noted that most of the PSOE ministers are far
more left-wing in their economic philosophy than the economic
team and that President Zapatero is not a strong leader, but
a compromiser unwilling to push a policy unpopular in his own
party.
Biotech
-------
¶8. (U) Arias Canete sympathized with the U.S. position on
biotech issues. He mentioned that he approved several seed
varieties during his tenure as Minister of Agriculture. He
also noted that he is being taken to court along with the
succeeding PP Minister of Agriculture for approving biotech
strains that could allegedly threaten the environment. Arias
Canete believes that biotech crops are very important for
Spain, noting that new strains of cotton are greatly desired
by farmers in the south. He asked us to inform him of any
biotech legislation of importance that passes through the
European Parliament. He is willing to assist us by lobbying
PP members in the European Parliament.
Comment
-------
¶9. (C) Arias Canete is clearly interested in maintaining
close ties with the United States. He is a well-informed,
articulate spokesperson for PP policies. He provided us with
a number of concise, cogent PP position papers on economic
issues. They show this group is serious, and views itself as
only temporarily in opposition.
MANZANARES