Spain's happy-go-lucky government: When good politics is bad economics
Luis RodrÃguez Zapatero stands out among the small band of centre-left heads of government in Europe because he has managed to keep his head more or less above the political waters (see article). Next door in Portugal, the socialist government looks headed for defeat in an election in September; so does Britain’s Labour government next year. But Mr Zapatero’s Socialist party has slipped only slightly behind the opposition People’s Party, according to an opinion poll this week. Even if Mr Zapatero himself is less popular than he was, he still bests Mariano Rajoy, the plodding opposition leader. That is despite an unemployment rate that has shot up to 19%, double the average in the euro area.
Mr Zapatero seems to be counting on inertia to pull his country out of its slump, allowing him to win a third term in 2012. He will be lucky to get away with it. Even if he does, it is a formula for the Italianisation of Spain. Put off the pain of reform now—and recovery will take longer. As Spaniards head for la playa, it is time their government told them so.
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