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Spain: Prime Minister Zapatero lashes out at European Central Bank

by wsws (reposted)
Saturday, July 5, 2008 :Spanish Prime Minister José Luis Rodriguez Zapatero has lashed out at the European Central Bank (ECB) and its president Jean Claude Trichet. His anger was provoked by Trichets statements that he may raise its interest rates this montha rise of 0.25 percent is widely anticipatedto contain growing inflation within the European Union (EU).
Consumer inflation in the euro-zone nations rose at an annual rate of 3.7 percent in May, well above the ECBs target of 2 percent.

I dont say its certain, Trichet said, I say its possible.

A very solid anchoring of inflation expectations is essential, Trichet added, making it clear that, despite rising energy and food prices, workers must bear the brunt of the growing economic crisis. The ECB is looking to land the first blow against demands for increased wages.

Urging Trichet to show a bit more prudence, Zapatero said, We all respect the independence of the European Central Bank but we all expect the European Central Bank to behave responsibly. He said an increase in the European Interbank Offered Rate (Euribor)the average interest rate at which 50 of Europes top banks borrow from one anotherwas surely excessive.

Repeating his criticisms later, Zapatero called for flexibility from the ECB.

Zapateros mood was darkened by the political crisis arising out of Spains growing economic problems, which has led to him being summoned to the countrys National Congress to explain what is happening and what he is doing about it. The appearance has few precedents.

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§Spain: Popular Party right-wing rejects "turn to the centre"
by wsws (reposted)
Saturday, July 5, 2008 :The right-wing of Spains Popular Party (PP) has rejected the turn to the centre endorsed at the June 20-22 party conference in Valencia. A significant and influential section of the party, grouped around president of the Madrid region, Esperanza Aguirre, and backed by former PP Prime Minister José Maria Aznar, has launched a struggle to undermine the decision and unseat Mariano Rajoy who was re-elected PP leader by conference delegates.

The conservative paper El Mundo described the period leading up to the conference as the darkest 100 days in Popular Party history.

The turn to the centrean attempt to focus attacks on government economic incompetencehas been orchestrated by sections of the PP led by Rajoy, the partys founder and former Francoist minister, Manuel Fraga, and the founder of El Mundo, Pedro José Ramírez, who turned against the partys four-year long campaign of confrontation with the ruling Spanish Socialist Workers Party (PSOE). They are focusing on softening their far-right image, whilst urging business leaders that only the PP can lead a frontal assault on the social conditions of the working class.

The PP initiated a full-frontal and overtly rightist offensive against the PSOE, together with the Vatican and sections of the military officer caste, soon after the Aznar government was brought down in March 2004 due to popular hostility to its support for the war in Iraq and neo-liberal economic policies. The new PSOE government was denounced as illegitimate, the product of a leftist coup, and repeated provocations were launched to unseat it from power. However, the campaign backfired and only served to galvanise popular hostility to the PP, alienate many of its own supporters and assist the PSOEs re-election earlier this year.

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