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Thursday, 13 October 2011

A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Matt kenyon
Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Front of Maastricht Aachen Airport Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Runway of Maastricht Aachen AirportMaastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Lobby of Maastricht Aachen AirportCustomers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

Jan Tindemans, chairman of Maastricht Aachen Airport's board The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

Wednesday, 12 October 2011

FSA broke its own rules in Keydata probe, judge rules

 

High Court judge found that the Financial Services Authority (FSA) had wrongfully used privileged emails to bring its case against Keydata. A further "relief hearing" will now determine the impact of the ruling, which could de-rail the case altogether. It is the latest in a line of setbacks for the regulator, which has been investigating regulatory breaches at Keydata and millions of pounds of missing retail funds for two years. Keydata invested in "life settlement funds", which buy and sell US life insurance and generate high returns. In June 2009 the FSA applied for Keydata's closure "to protect investors", saying it was concerned about "potentially missing assets". The business was fast-tracked into administration and referred to the Serious Fraud Office (SFO). It emerged that £103m of life insurance policies managed by a Luxembourg business, SLS Capital, and sold to Keydata investors as low-risk bonds might have been "misappropriated".

Former Ukrainian PM jailed for gas deal

 

Former Ukraine prime minister Yulia Tymoshenko has vowed to fight for her freedom after being jailed for seven years over a 2009 gas deal with Russia. Amid emotional scenes in the packed court, Tymoshenko was convicted of exceeding her powers by ordering state energy firm Naftogaz to sign a $189 million gas deal with Russia in 2009. The sentence which was handed down in a Kiev court has been criticised by both the European Union and Russia as politically motivated. Even as the judgement was being read out, Tymoshenko was calling on citizens to defend Ukraine from authoritarianism. In the streets outside the court there were scuffles between her supporters and riot police. The verdict is set to further strain ties between Ukraine and the West. "The court rules that Y.V. Tymoshenko intentionally used her powers to criminal ends and, acting deliberately, carried out actions ... which led to heavy consequences," Ukrainian judge Rodion Kireyev said in his judgement. "The court finds her guilty and sentences her to seven years in prison." The sentence came in a lengthy judgment at the end of a three-month trial which has polarised society in the ex-Soviet republic. EU officials have warned that a conviction would severely jeopardise Ukraine's hopes of signing an association agreement with the European Union this year which would be a first step towards its goal of joining the bloc. The former Orange Revolution leader, flanked by her husband Olexander and daughter Yevgenia, immediately denounced what she said was a verdict ordered by her political rival, president Viktor Yanukovych. After the judge announced his decision, Mr Yanukovych told journalists that the verdict was not final and he understood the European Union's anxiety over the case. "It has made the European Union anxious and we understand why this is so," he said. "Today the court took its decision in the framework of the current criminal code. This is not the final decision," he said, alluding to the court of appeal and possible law changes. The verdict was in line with the demand of prosecutors, who wanted a sentence of seven years. "We will fight and defend my good name in the European court," Tymoshenko said. "We have to be strong and defend Ukraine from this authoritarianism." Judge Rodion Kireyev said Tymoshenko sustained a loss to state gas firm Naftogaz of 1.5 billion hryvnia ($189 million) by agreeing the 10-year contract. The judge ordered Tymoshenko to pay back the loss in full as compensation. Despite being in custody since August, Tymoshenko, as ever, showed up in court with her hair plaited intricately around her head and wearing an immaculate beige dress. She shouted "Glory to Ukraine!" after being led in.

Sunday, 9 October 2011

Sicily's tiny anti-Mafia TV channel

 

Sicilian TV station that campaigns against the Mafia, Telejato, is among hundreds of channels threatened with closure due to a change in the law. Partinico is a pretty nondescript little town - a handful of baroque churches, a couple of elegant palazzos and a lot of ugly concrete in between. If it were not for the fact that it is in the so-called "Mafia Bermuda Triangle", perhaps nobody outside the province of Palermo would have heard of it. As it is, like Corleone, it is a name that prompts Italians to raise an eyebrow and suck in their breath when you tell them you are planning to visit. Discreet entrance My point of departure is San Giuseppe Jato, another former Mafia stronghold. Continue reading the main story From Our Own Correspondent Broadcast on Saturdays at 1130 BST on BBC Radio 4 and weekdays on BBC World Service Listen to the BBC Radio 4 version Download the podcast Listen to the BBC World Service version Explore the archive Having just visited a vineyard on land confiscated from an infamous jailed boss, I decide to try my luck with the only direct bus of the day to Partinico. I do what the traffic warden advises and wave it down in the middle of the road, just in front of the toy shop. After a picturesque journey through the Jato Valley, I alight an hour later at my destination, a town where the mountains rise up above the church steeples and illegal attic extensions. I find the block of flats which is home to Telejato without too much difficulty. It is on a quiet side street away from the bustle of the main road. The building number seems right but there is no sign or any directions to the TV station inside. I conclude that the best way to find Pino Maniaci is to follow my nose. As I climb the staircase, the smell of cigarette smoke gets stronger. I follow the aroma up to the second floor, through an unlocked door and into the newsroom. Pino Maniaci's daughter Letizia is the station's main reporter It is 13:20 and they go live at 14:00. Pino, his daughter and a couple of volunteer journalists are putting together the bulletin. When I come in, he turns towards me, cigarette between his lips. After the briefest of greetings he says, "We're on air soon so sit down and don't break my balls." His daughter looks up and grins. "Don't worry, that's how he talks to everyone," she says. Indeed Pino Maniaci, when not inhaling smoke, is invariably exhaling expletives. Unable to sit still and not wishing to be a ball-breaker, I nose around the small converted apartment. You can tell by the pictures, tributes and cuttings on the walls, just how proud Pino is of Telejato. Courage He has turned a tiny local TV station into one of Sicily's most powerful anti-Mafia voices. Continue reading the main story “ Start Quote With his Groucho Marx-style moustache and Chico Marx-style accent, he boasts that even the Mafia watch Telejato” He says nearly all the locals watch it. In the heart of Cosa Nostra territory, he was the first journalist to dare to give the full names of arrested mafiosi. Before him, nobody published more than initials for fear of reprisals. Pino, his family and a small team of volunteers put together a daily news show, which is dominated by Mafia and corruption stories. "We're always first on the scene," he tells me. "Even international channels like CNN call and ask to use our footage." The station works closely with the various police forces, including the Catturandi di Palermo - a special squad that hunts mafiosi in hiding. "Wherever we show up, they're there. Wherever they show up, we're there." Pino's childlike bravado conceals his genuine courage. With his Groucho Marx-style moustache and Chico Marx-style accent, he boasts that even the Mafia watch Telejato. "We were the only ones to interview the brother of Bernardo Provenzano, one of the biggest Mafia bosses," he tells me. With a gleeful twinkle, Pino continues, "We even discovered that Provenzano himself had an aerial specially positioned to pick up our signal. If you listen to the police wire taps, you can hear our signature tune!" Murder attempt Telejato has a motto: "They consider themselves men of honour. For us, dishonouring them is a question of honour." Pino uses derision as both weapon and shield, but he admits he is scared, especially for his family. "I smoke three packets a day and always joke that it's just as well the biggest room in our tiny station is the bathroom!" Living under police escort, he has suffered countless attacks - slashed tyres, severed brake cables, burnt-out cars, windscreens shattered by gunshots. "They even tried to bump me off!" he chuckles, describing a failed attempt to strangle him, which left him with four fractured ribs, a broken leg, a black eye and several broken teeth. At 17:00, it is time for me to head for the station to catch a train up to Palermo. Pino refuses to let me go without showing me some true Sicilian hospitality. Police escort in tow, we go to a nearby coffee bar. Everyone, including the officers, gets an espresso and Pino insists I taste a cannolo, the island's famous ricotta-filled pastry. "I have to keep Telejato going," says Pino between mouthfuls, "so that one day Sicily will be more famous for these than for the Mafia."

PM intervenes in Fox flatmate row

 

Beleaguered Defence Secretary Liam Fox is fighting for his political career after the row over his working relationship with a close friend deepened. Prime Minister David Cameron is poised to decide his fate on Monday after ordering the head of the civil service to urgently report back on an internal investigation into whether Dr Fox's links to Adam Werritty, a former flatmate, breached ministerial guidelines. A series of allegations have surfaced over the unusual involvement Mr Werritty had in brokering meetings for Dr Fox, as well as the access he enjoyed to Government despite having no formal parliamentary or Whitehall role. Dr Fox, who has been in Libya on what should have been a publicity coup as he met the country's interim government, was forced to issue an embarrassing statement clarifying comments he made earlier about how a meeting in Dubai in June with a businessman had been arranged. But he also insisted he has nothing to hide and indicated he is the victim of a smear campaign, telling The Sunday Telegraph: "I have absolutely no fear of complete transparency in these matters. I think there are underlying issues behind these claims and the motivation is deeply suspect." Further revelations emerged, however, that cast doubt on previous claims made by Dr Fox that Mr Werritty, best man at his wedding, had never attended formal meetings with overseas dignitaries. According to the Observer, footage has been uncovered that shows Mr Werritty meeting Sri Lankan president Mahinda Rajapaksa with Dr Fox in a London hotel last year. During his visit to Libya, Dr Fox was asked to answer allegations that Mr Werritty arranged the Dubai hotel meeting, away from officials, with him and Harvey Boulter, chief executive of private equity company Porton Group. The Secretary of State said defence industry representatives asked for the meeting "when they happened to be sitting at a nearby table in a restaurant", but emails emerged later that appeared to confirm that Mr Werritty had been involved in setting up the discussions for some time - and Mr Boulter told the Guardian he first met Mr Werritty to arrange a meeting with Dr Fox in April. In a statement issued after the emails emerged, a spokeswoman for the minister said: "Dr Fox was referring to Mr Werritty, and not himself, bumping into Mr Boulter at a restaurant prior to the meeting."

Friday, 7 October 2011

Spanish banks in €6bn merger talks

 

Banco Popular, Spain’s fifth-biggest listed bank by assets, has offered to buy its smaller listed rival Banco Pastor in a merger that marks a new stage in the restructuring of the country’s financial sector. In filings published on Friday by the Comisión Nacional del Mercado de Valores (CNMV), the market regulator, the banks said they were proposing a friendly all-share deal in which Popular would offer to buy 100 per cent of Pastor. More ON THIS STORY Dismay at Spanish bank restructuring Spain nationalises three more savings banks In depth European banks Santander predicts return to big profits Global Insight Italy and Spain The CNMV had earlier suspended trading in shares of Popular, with a total market value of €4.99bn, and of Pastor, valued at €827m, apparently after news of the discussions leaked before the planned announcement on Monday. At Friday’s share prices, the Popular offer represented a one-third premium for Pastor and valued the target bank at 0.75 times book value, according to the Pastor camp, although Popular’s share price could fall once the suspensions are lifted. CaixaBank, the banking arm of the Barcelona-based La Caixa savings bank, was valued at 0.8 times book value at its flotation earlier this year, but Bankia, comprising Caja Madrid and six others, managed only 0.4 times when it was listed. Three savings banks seized by the official bank rescue fund last month were valued at between zero and 0.12 times book. Until now, the Bank of Spain and the Spanish government have focused on forcing unlisted savings banks to recapitalise themselves and merge with each other to reduce costs and improve efficiency after the collapse of the Spanish housing and construction bubble. Listed banks have been seen as potential buyers rather than takeover targets. “This is only the start,” said one person aware of the talks as the boards of the two companies held separate meetings. “There is going to be a huge shake-out in the banking sector.” Popular is a national Spanish bank that has focused on retail banking and lending to small and medium-sized businesses, while Pastor’s activities are concentrated in the north-western region of Galicia. Pastor – along with four Spanish cajas or savings banks – was one of the nine European banks that failed Europe-wide stress tests in July.

Wednesday, 5 October 2011

Spain Regions Race to Sell $1.3 Billion Property This Year

 

Catalonia and Andalusia, two of Spain’s largest and most indebted regions, are trying to sell $1.3 billion of real estate by the end of the year as the country tries to slash its budget deficit and keep borrowing costs from ballooning. “We put the cream of the crop in the portfolios to ensure the sales are completed,” Jacint Boixasa, director of assets for Catalonia, said in interview in Barcelona. “Our target is to sell 550 million euros ($742 million) of real estate by year- end, which is relatively little time.” Spanish regions, which control more than a third of public spending, will play a pivotal role in the nation’s effort to cut its deficit to 6 percent of gross domestic product this year from 9.2 percent in 2010 as the country tries to avoid following Greece, Ireland and Portugal in requiring a bailout. In August, Moody’s Investors Service put Spain’s credit rating on review for a downgrade, citing the worsening finances in the regions. Catalonia is trying to find buyers for 37 properties including the Barcelona stock market on Paseo de Gracia, Spain’s fourth-most expensive commercial street, as well as the Catalan Agriculture Ministry on Gran Via. Jones Lang LaSalle and Madrid- based real-estate consultant Aguirre Newman are advising the government on the sales. Andalusia hired BNP Paribas SA to help raise at least 400 million euros selling 76 properties including the cultural department in Granada and youth centers in Malaga, according to the region’s treasury department. The government will pay around 30 million euros a year to lease the buildings after the sale

Tuesday, 4 October 2011

Greenpeace has revealed how Spain is “repeatedly and systematically overlooking illegal, unreported and unregulated (IUU) fishing by its huge fleet throughout European waters and beyond”.

 

Greenpeace has revealed how Spain is “repeatedly and systematically overlooking illegal, unreported and unregulated (IUU) fishing by its huge fleet throughout European waters and beyond”. The report, titled Ocean Inquirer, takes as a case study one Galician family whose companies have received over €16m in subsidies from European taxpayers to fund a long list of criminal activities. Greenpeace states that the Vidal family’s many ships have been found conducting IUU fishing for decades, right around the world, and been prosecuted in the US, the UK and in the Pacific and the Spanish government have promised on numerous occasions to investigate and put an end to these abuses. But Greenpeace claims that what they have actually done is fund them - with our money. Spain has the largest fishing fleet in Europe, maintained with billions in subsidies - more than double the amount of subsidies received by any other EU nation. Greenpeace has accused the Spanish fleet of exploiting the CFP to infiltrate the fleets of other European nations and take their fishing quotas. If Spain, and Europe, continue with business as usual, it is predicted by the EU that less than 10% of our fish stocks will be at sustainable levels by 2022. Greenpeace’s case study of the Vidal family documents their long history of illegal fishing, their prosecutions and convictions and their frequently successful attempts to avoid justice, and Spain’s continuing failure to deal with an issue which has been raised with them on numerous occasions. It also reveals new evidence on Vidal’s latest business venture, an alleged fish oil factory in Galicia. This factory is not currently operational, many months after its claimed opening date, and yet Greenpeace says it has already earned the Vidal family another €6.5m - in EU subsidies. Greenpeace oceans campaigner Ariana Densham said, “According to some estimates, up to 49% of the global catch is IUU, and this is one of the reasons why our over-exploited fisheries are in such rapid decline. The fact that in Europe this theft of fish is being subsidised by taxpayers’ money, that we’re actually paying pirates to steal our fish, destroy one of our oldest industries and devastate the marine environment, shows just how corrupted the CFP is.” Greenpeace is calling for a full EU investigation into subsidies given to the Spanish fishing industry, and for all future subsidies to be given to legal, transparent and sustainable fishing practices, consistent with the CFP’s stated objectives. In response to this report, European fisheries commissioner Maria Damanaki stated that “The serious allegations are already under investigation by the European Commission and being followed up with the Spanish national authorities. We are establishing all facts in order to pursue breaches“.

Sheikh Abdullah Ben Nasser Al-Thani's work on La Bajadilla Port in Marbella delayed

 

DELAYED La Bajadilla Port in Marbella has still not begun, because four months after the work was assigned, the contract has not been signed. There are three appeals against Sheikh Abdullah Ben Nasser Al-Thani’s project, which was due to be completed in 2015. One is from the Marbella Marina International Consortium, which was on competition with the temporary union created by Marbella Town Hall and Qatar Sheikh and Malaga CF owner, Al-Thani. His proposal to expand Marbella’s port and marina was chosen over theirs, but they believe that the decision was “unfair”. They haven’t directly asked for the process to be stopped, but bringing a case against the decision makes this automatic, regions such as Andalucia must have a specific tribunal to regulate relationships between public administrations and the companies chosen to carry out work, as the Junta de Andalucia does not have one, the Andalucian Supreme Court of Justice will rule in this case, and a judge will decide if the work can go ahead, even if the case continues at the same time. In any case, it appears the contract will not be signed this year. Al Thani’s project conceives a circular port with space for 1,221 yachts and a cruise stop, as well as a 45,000m2 commercial and leisure area with a five-star hotel. It aims to create around 3,000 jobs.

35 towns in Malaga spend more than they make

 

101 towns in Malaga province, 35 ended last year with budgetary deficits for spending more than they were making. Changes to the Constitution which were approved by PSOE and the PP in early September in congress in order to limit the deficits of public administrations could mean that many towns will find themselves in a sticky legal situation. The text states that “local administrations” must have “budgetary balance” by 2020, but seeing the figures for the province, which is not an exception in Spain, for 2009 and 2010, this will not be easy. The numbers could be even worse than it initially appeared, as Atajate, Carratraca, Cortes de la Frontera, Gaucin, Genalgualcil and Parauta have not yet handed in their figures for either year, while others, which although the Tax and Economy Ministry’s records show their budgets were balanced, admit that they ended the year with empty coffers and no money available in banks and payments to face. Many cases have only come to light after the elections when new parties have taken over. Malaga city has a debt of €735m, the highest in the province and the fourth worst in Spain behind Madrid, Barcelona and Valencia. The second worst figures are seen in Benalmadena, with a debt of €87m, although the worst deficiency is in Cuevas Bajas, with a difference of €800,000 between what was spent and what was taken in 2010.

Monday, 3 October 2011

Spain's first ever retirement home for gay and lesbian residents.

An artist's impression of the 26 December home's interior (image: Touza architects)A landscaped, luxury home is envisaged

A short train ride from central Madrid is a scruffy plot of land covered in weeds and surrounded by wire fencing. In just a couple of months work is expected to start to transform the site into Spain's first ever retirement home for gay and lesbian residents.

Spain has been at the vanguard of Europe in terms of gay rights in recent years, but activists say reforming laws has been easier than changing attitudes.

"Gay old people have to go back in the closet when they enter retirement homes," explains Federico Armenteros, who runs the December 26th Foundation in Madrid.

It is named after the date in 1979 when the law used during Gen Franco's dictatorship to imprison homosexuals - or to send them for "cure" with electric shocks - was repealed.

"For many years, a lot of people believed that homosexuals were sick and sinners," Mr Armenteros says.

"That is more pronounced among older people, and hard to change,"

So the foundation has been working on a solution.

'Insulted and alone'

Start Quote

Jose Maria Herreras

I have to make myself as invisible as possible - go back in the closet - so they don't notice me”

Jose Maria Herreras

It has formed a co-operative, recruited architects and designed a luxury, landscaped retirement complex - complete with 115 apartments, gym, spa and restaurant.

There is space for yoga, Tai Chi and dance classes - and plans to house archive material for the first research centre on the history of the gay rights movement in Spain.

Designed to be "gay-friendly", the Foundation says the home will be open to anyone regardless of their sexuality.

Jose Maria Herreras describes it as a dream come true.

He looks relaxed, sitting at street cafe in Chueca - the gay heart of Madrid. But Jose is 65 and lives in a retirement home. He says his life has been miserable ever since the other residents discovered he was gay.

"They started to steer clear of me and insult me," he explains.

"They called me 'queer' and it made me feel awful. My room has two beds but no-one wants to share with me. So I'm alone and it's bad.

"I have to make myself as invisible as possible - go back in the closet - so they don't notice me. And I spend as much time outside the home as possible."

The proposed site of the 26 December home For now the site of the home is just wasteland

Gay rights activists believe that experience is widespread.

Predominantly Catholic Spain was among the first countries to legalise gay marriage and adoption.

Gay pride celebrations in Madrid are among the best-known and most extravagant.

The formerly run-down neighbourhood of Chueca now has a thriving gay scene including clubs, saunas, bars and bookshops.

But four decades of Gen Franco's right-wing dictatorship meant that change came late to Spain and has spread slowly.

'Anti-camp law'

"We only started fighting for our rights in the 1980s," explains Mili Hernandez, who opened Madrid's first gay and lesbian bookstore, Berkana, in 1993.

"Until 1979 there was a law that [they] could take us to jail just for walking on the streets and being a bit camp."

Start Quote

I think we should go to the homes and ask for our rights”

Mili HernandezSpanish gay rights pioneer

The 1980s Aids epidemic was another setback for equal-rights campaigners.

"Now we have [some] of the best laws in the world for homosexuals, but we didn't have enough time to change mentalities," Ms Hernandez says, and points out that there are still very few high-profile, openly gay role models in the country.

"We're still in the closet," she says.

The bookstore owner sympathises with the problems of gay pensioners in care but she would prefer a different approach.

"I think we should go to the homes and ask for our rights. Ask for a double room, and tell them we are gay. We should try to insist."

But plans for the alternative home are already well advanced.

"It's too tough to make people who are suffering now wait until society changes and the discrimination ends - when people whisper about you and call you names, and won't enter your room," argues Federico Armenteros.

"These things are shrinking but unfortunately they exist."

He and his partner have already signed up for an apartment.

"I'll be living in a quality place, with people who respect, understand, love and care for me," Mr Armenteros says.

"Usually, when you end up in a home you're just another number. But this is something completely different."

'Social need'

A flat at the new complex should also work out considerably cheaper than the average retirement home.

An artist's impression of the 26 December home's exterior (image: Touza architects)How the home should look eventually

That is largely because a sympathetic local mayor has granted a low-cost 75-year lease on the land.

The co-operative system means members will cover 40% of the home's costs in advance while remaining funds will be sought from the banks.

For the architects who have drawn up the plans - for no charge, so far - the project makes sound sense.

"This is a project which will actually happen - that's important because we've done a lot of unnecessary building in Spain," says chief architect Julio Touza Sacristan, walking the plot with his sketches and artist's impressions.

But he also got involved because he saw a social need for the residence.

"I'm not sure everyone would like to be associated with such a project," he says.

"We're not as modern as we think we are in Spain but we think this is really necessary."

For Jose Maria Herreras, the place cannot be built quickly enough.

"This is somewhere where everyone will be equal," he says. "It's a totally different home where we won't have to hide who we are. We will be people. I will be free again."

Spain judge frees 5 suspected of financing terror

 

Five Algerians suspected of financing al-Qaida's North African branch have been freed by a judge who said there was no significant evidence against them. The judge ordered the men to stay in Spain, report to judicial authorities twice a month and declare any change of address. The men are being investigated on suspicion of providing logistical and financial support to al-Qaida in the Islamic Maghreb, or AQIM. The arrests took place Tuesday in the northern Basque and Navarra regions. Mohamed Talbi, Hakim Anniche, Mounir Aoudache, Abdelghaffour Bensaoula and Ahmed Benchohra have not been charged. National Court Judge Fernando Grande-Marlaska said Saturday that there was no evidence the men had sent "significant sums to Algeria" or that the recipients were "persons related to terrorist activity." The five men had also been under investigation on suspicion of maintaining contacts with radical Islamists in France, Italy and Switzerland. Police seized a large amount of documents and computer material as part of their probe. AQIM operates in Algeria and emerged in the 1990s from armed groups fighting the Algerian government after the army stepped in to cancel the 1991 elections in a bid to stave off a victory by an Islamist political party. The group declared allegiance to al-Qaida in 2006, changed its name and renewed a campaign of bombings and kidnappings across the Sahara. AQIM is currently holding four French hostages, and French officials have called it the biggest terror threat to France and its interests. Dozens of suspected radical Islamic militants have been arrested in Spain since the Sept. 11, 2001, terror attacks in New York and Washington, and again after the 2004 commuter train bombings in Madrid.

EU subsidies fuel Spain’s ravenous fleet

 

Decades of overfishing have left Europe’s fish stocks in peril and its fishermen in poverty. It’s an impasse paid for by EU taxpayers. Yet a proposed revision of the EU’s fishing law, hailed as sweeping reform, is rapidly losing momentum. A look at the industry’s biggest player - Spain - shows what officials are up against. Billions of euros in subsidies built its bloated fleet and propped up a money-losing industry. All the while, companies systematically flout the rules while officials overlook fraud and continue to fund offenders, an investigation by the International Consortium of Investigative Journalists has found. “Spain has earned its bad reputation,” said Ernesto Penas Lado, director of policy and enforcement at the European Commission’s Directorate-General for Maritime Affairs and Fisheries. “The problem is others don’t have the reputation and deserve it just as much.” Spain may not be alone. But as the EU’s most powerful fishing fleet, it is the starkest example of a failed EU policy, critics say. The Spanish fishing industry has received more than €5.8 billion (more than $8 billion) in subsidies since 2000 for everything from building new vessels and breaking down old ships to payments for retiring fishermen and training for the next generation, an fresh analysis by ICIJ shows. Subsidies account for almost a third of the value of the industry. Simply put, nearly one in three fish caught on a Spanish hook or raised in a Spanish farm is paid for with public money. ICIJ’s analysis is the first in-depth look at just how much public aid Spain has received for fishing - primarily from EU taxpayers, but also from Madrid and regional governments. The country has cornered a third of all the EU’s fishing aid since 2000, far more than any other member state. The central government doles out even more for things such as low interest loans and funding for its largest industry associations, which in turn lobby the EU for more industry subsidies, records show. Since 2000, the sector has avoided paying €2 billion in taxes on fuel to the Spanish Treasury. Public monies also fund a surprising range of services. More than €82 million ($114 million) has been spent to promote the fishing sector through advertising and at trade shows. After fishing vessels were hijacked by pirates in the Indian Ocean, Spain in 2009 changed its law to allow vessels to hire private security forces onboard, and then it helped foot the bill to the tune of €2.8 million. The root of the problem, regulators say, is that out-of-control subsidies encourage countries to build up already oversized fleets that are rapidly depleting the seas. “Fish are not an unlimited resource,” said fisheries economist Andrew Dyck of the University of British Columbia. “When the public purse is the only thing propping this industry up, we are paying for resource degradation.” The EU Commission itself recently concluded that “too many boats continue to chase too few fish.” It blamed the situation, in large part, on subsidies. Fish, not human rights One of the most controversial forms of public aid pays for foreign fishing licences. With its own waters increasingly empty of fish, the EU buys rights to the fishing grounds of developing countries such as Morocco, Mozambique and the Ivory Coast. Green groups, fishing experts and some EU politicians have criticised the agreements, saying European fishermen take advantage of poor countries that often lack knowledge and resources to protect their fish stocks. And key agreements cost more than they return on the value of fish. This is the case with Morocco, where each euro invested returns only €0.65 in value added, according to a study funded by the EU. The Spanish industry has received more than €800 million ($1.15 billion) in foreign licenses over the past decade — about two-thirds of the EU licences overall, according to the ICIJ analysis. The agreements have the support of Carmen Fraga Estévez, the European Parliament’s most powerful legislator on fisheries issues. A sharp-tongued politician with an encyclopedic knowledge of the industry, Fraga served as fishing secretary in Spain and has held a seat in the parliament’s committee on fisheries - which she now chairs - for 17 years. Her loyalty to the industry appears to be so deep that when she had to choose between human rights and fish, she voted for the latter. “The fisheries committee has to discuss fisheries issues, not human rights,” she was quoted in the press as saying when in 2009, the committee for the first time voted down a fishing agreement. Days before the vote, 157 civilians died after Guinea’s totalitarian regime opened fire on pro-democracy protesters. The agreement would have handed the Guinean government €450,000 ($639,000) a year for fishing licences. Fraga Estévez declined requests for interviews from ICIJ. Spanish member of the European Parliament (MEP) Josefa Andrés Barea said the subsidised foreign fishing licences are vital. When Spain entered the EU in 1986, very few Spanish vessels were allowed in the Union’s waters. So fishing in foreign waters was - and still is - the only way for many ship owners to make a living. And if Spain isn’t fishing, she said, less savory global players will scoop up the catch instead. "There's a fundamental problem here, which is that major [fishing] powers like China will be there if we're not. And they don't have any rules,” Andrés said. “They're much more predatory than we are." Fewer fish, poorer fishermen EU waters are among the world’s most exploited. Scientists say three quarters of assessed fish stocks are overfished. Eels once served as a delicacy are so depleted scientists doubt they can recover despite a Europe-wide rescue plan. Irish Sea Cod, Baltic Sprat and West of Scotland herring are all dwindling. The trend stretches across the globe. In 2006, the UN’s Food and Agriculture Organization estimated that 75 percent of the world fish stocks were fished to the very limit of - or beyond - sustainable levels. In its latest report, from last year, that figure had risen to 85 percent. “Europe has a long and dark history of overfishing,” said Boris Worm, one of the world´s most renowned marine biologists, working at Dalhousie University in Nova Scotia, Canada. In a 2003 study, Worm showed that industrialised fishing has, since 1950, emptied the oceans of nine out of 10 fish longer than 20 inches such as salmon, cod and halibut. Fewer fish mean fewer - and poorer - fishermen. Across the EU, the sector often costs taxpayers more than it produces. According to a recent report by the environmental group Oceana, at least eight countries received more money in public fisheries aid in 2009 than the value of their landed fish. The fishing industry was the only segment of Spain’s economy that shrunk in the 2000s. The northwestern region of Galicia more than anywhere else in Europe relies on the industry - and the subsidies - to stay afloat. Yet the area lost a third of its fisheries-related jobs in the decade leading up to 2006. In the Galician port of Vigo on the Atlantic coast, more fish pass across the docks headed for consumers’ plates than in any other port in the world. Coastal towns are riddled with signs boasting subsidised fishing projects. Politicians include the sector as a central theme in their campaigns. The industry’s power was propelled by the 1960s push for industrialisation by the fascist Franco regime. Franco himself was an avid fisherman and a Galician by birth. “Economically the [fishing] industry is between the tomato and the potato. But politically it is more important than any other industry,” said EU’s head of fisheries control Valérie Lainé. The sector “has always been protected by the government - without the industry, Vigo would be dead, Galicia would be dead.” The powerful Galician industry group ARVI, which boasts of its close ties to lawmakers, acknowledged that fishing would not be viable without public funding. In a recent position paper, it encouraged politicians to support subsidies to modernise outdated vessels, fish in foreign waters and build new on-shore cold storage. Meanwhile, subsidies steadily flow to the region, but sometimes only make things worse. Víctor Muñiz has relied on fishing for decades. He used to own vessels, as did his father before him. Not anymore. Now they operate a fish processing plant in the Galician town of Meaño. The factory was renovated in 2009 with EU subsidies to process and freeze up to 300 tons of fish per hour; it was expected to employ 100 people. But the brand new machinery stands silent. “There should be 10 trucks with mackerel here,” Muñiz said in a bitter tone as he walked through the 8,000 square meter plant in April. But within 20 days of the start of the season, most vessels had already scooped up their entire mackerel quota. Muñiz said the quota is too low, but his major frustration is that too many factories like his were subsidised in the first place. “You present a €2 million project, and they give you 60 percent. You’ve told them how much fish you're going to produce and what kind. Somebody should have told the processing plants: ‘No, sorry, this is the quota for mackerel.’” Policy in a shambles By 2006 it was clear that EU’s fishing policy was in a shambles. Fleets were bloated. Stocks were crashing. Researchers commissioned by the EU drafted a series of reviews of the community’s fisheries law - the Common Fisheries Policy, which will govern the fleet for at least a decade. One little-known document is informally called the “Frankenstein report” because of its damning conclusions. It lays the blame squarely on influence-driven subsidies: The sector would be broke without them. Swedish Green Party MEP Isabella Lövin said the key problem of the EU fisheries policy is that it was “modeled after agricultural policy. You provide fertilizer and farming equipment, you get more vegetables. So they used the same model in fishing - you increase the number of boats, you get more fish. But it doesn’t work that way,” she said. “You end up with less fish.” Subsidies over the past decades built a bloated EU fleet that plundered fish stocks. Efforts to reduce the capacity have focused on paying companies to break down old vessels. But that reduction has been undercut by subsidies given to modernise existing vessels, enabling them to catch more and more fish. According to the 394-page “Frankenstein report”, EU-countries need to cut capacity in half and severely restrict - and adhere to - quotas for fish stocks to recover. But Spanish Fishing Secretary Alicia Villauriz said policymakers must consider more than capacity. “You cannot make a statement saying: If you reduce the fleet everything will be more profitable. You'll also destroy a lot of employment.” Any transition, she said, would need to happen slowly. That the European fleet was bloated was nothing new - calls to cut it down began in the 1980s. But the aid kept rolling in to build new ships and modernise old ones. “The sector has managed to attract more financial resources than would be justified under normal conditions,” the “Frankenstein” report said. The EU researchers also found that groups set up to advise the Commission on a new fishing policy - largely made up of industry representatives - consider the platform “mainly as a channel for political influence, and secondly as a forum for discussion” of the new law. In short: They were lobbying for their interests instead of trying to find solutions. The EU-commissioned “Frankenstein” report concluded that EU policy did “not provide the right incentives for responsible fishing, or may even induce irresponsible fishing.” Turning a blind eye Protected stocks worth as much as €16.7 billion ($23 billion) are illegally traded worldwide every year - making the black market in fish more valuable than smuggling stolen art. Many of the players in the illicit trade set up shell companies in places that do not adhere to international conventions protecting the oceans. Spanish nationals register more vessels to “flag-of-convenience” countries than any other besides Panama, Honduras and Taiwan - which are themselves considered nations where a ship-owner can register their boats without having to adhere to strict tax or safety requirements, and can operate without oversight. It is rare for the commission to take a member state to court. The European Court of Justice - Europe’s highest court - has found Spain guilty three times of failing to implement EU fishing laws. Spain has refused to enforce catch limits, police its fleet or impose adequate punishment, the court ruled. One of Spain’s most widely criticised shortfalls is policing its port of Las Palmas on the Canary Islands off the Moroccan coast. Illegal shipments of fish plundered from West African waters regularly filter into the EU through the port, according to multiple investigative reports. Fishing secretary Villauriz said control in Spain is expensive because of the sheer size of its industry - more than 10,000 fishing boats, 3,084 miles of coastline and 47 major ports. “But that doesn't mean we're not taking care of our obligations in control matters” she added. The Spanish Ministry of Environment, Agriculture and Fisheries told ICIJ that inspections have nearly doubled since 2004 to 9,323 in 2010. That’s still far from the number of inspections other countries are carrying out - the United Kingdom logged nearly 50,000 inspections in 2004. But some things don’t appear to have changed. The number of inspectors in the port of Vigo - Europe's largest fishing port - remains the same as in 2003, when EU officials blasted Spain for the measly number of national inspectors at its ports. Today four inspectors oversee more than 700,000 metric tons of fish a year - that’s nearly 20,000 kilos of fish per inspector for every hour of every day of the year, including Christmas. Subsidised offenders Spanish officials, like those in many other EU countries, do not take into account whether its nationals have been involved in the illegal fishing trade before doling out public aid. Neither Spain nor the EU will make public information about offenders who have been fined for illegal fishing - also called Illegal, Unreported and Unregulated fishing (IUU). But a sliver of insight can been gleaned from a database of appellate court rulings. ICIJ reviewed every court case adjudicated since 2000 in which subsidised companies unsuccessfully appealed fines imposed by the Spanish government. In more than 80 percent of cases in which the appellant could be identified, firms continued to receive subsidies after the court had upheld penalties, the analysis shows. There’s only one case in which the ministry of fisheries tried to prevent a company from receiving subsidies, according to ministry officials. That Spanish ship-owner so exemplifies the quagmire as to make it a near cliché. Government officials and international regulators have repeatedly targeted Vidal Armadores for its alleged involvement in a decade-old international network of pirate fishing vessels, court and law enforcement records show. Brussels demanded multiple times that Spain recover subsidies and “take action against” Vidal Armadores. At least through 2010, however, Spain and the EU continued to pay the firm — at least €8.2 million ($12 million) since 1996. Last year the government finally fined the company and cut off aid, but the case is pending appeal. In an interview with ICIJ, one of the firm owners, Manuel Antonio Vidal Pego, denied allegations of illegal fishing and said the company was entitled to the subsidies it received. Like Vidal Armadores has in the past, seafood giant Pescanova targets Patagonian toothfish - sold in the US as Chilean sea bass. Unlike Vidal Armadores, Pescanova is a member of an association that fights illegal fishing. In Spain, it boasts a trusted motto: “Lo bueno sale bien,” translated as “Good things go well.” But the company has its own troubles. Last year, Pescanova’s US subsidiary pleaded guilty to illegally importing $1.2 million worth of toothfish. While that case — nicknamed “Operation Toothless” — was pending, the US Department of Justice launched a second investigation into another allegedly illegal importation. The status of the second investigation is unknown. Pescanova is one of the Europe’s three largest seafood companies, with a fleet of around 100 boats fishing worldwide and annual sales of €1.53 billion (more than $2 billion). Yet, since 1995 the company has pulled in more than €175 million ($250 million) in subsidies, according to the ICIJ analysis. Pescanova repeatedly declined requests for interviews from ICIJ. “We've had 50 years of positive history,” said spokesman Angel Matamoro during a brief phone exchange. “I don't think you're asking about themes that will promote our image.” Regarding the US investigations, he said, “Whatever we had to say, we said it to the US court. The company follows scrupulously the law in every country it’s in.” One firm that broke the law and continued to receive aid is Albacora, one of the largest tuna companies in Europe. The company’s boat Albacora Uno last year was fined $5 million - the largest fine in US history - for illegally placing fishing gear in US waters multiple times during a two-year period. The boat was built with subsidies and used subsidised fishing licenses. And even after the US fined the firm, Spain granted Albacora €1.8 million ($2.6 million) worth of subsidies to fish in foreign waters. The Spanish ministry of fisheries told ICIJ it had fined Albacora but will not deny the company further aid. Albacora director Jon Uria said the 67 infringements were an “isolated” incident. The company was unaware of the infractions, he said, until the US government alerted executives. In his view, the fine was disproportionate to the offense. A radical reform? Javier Garat is the Spanish industry’s most visible and eloquent lobbyist. He was born into the family that co-founded Albacora. Garat is now a shareholder of the company, but he says that does not influence his lobbying. In his meetings with officials, he often requests subsidies for the sector. “That money has generated wealth,” he said. “It’s been used to modernise an obsolete fishing sector” so that today “we have better, more modern, more secure vessels.” Garat heads Spain’s powerful lobbying group Cepesca as well as the Europe-wide industry group Europêche — both of which operate with EU subsidies. In the halls of the ministry of fisheries in Madrid, the word is that Garat will be appointed Spain’s next fishing secretary following the November elections. Following closed-door meetings at the ministry in April, Garat and Spanish Minister of Environment, Agriculture and Fisheries Rosa Aguilar announced that the ministry and Cepesca were devising a “common roadmap to defend Spanish interests” in the overhaul of the EU fishing policy. After two years of deliberation, the European Commission presented its proposed legislation in July. No one but the commissioner herself appears satisfied with the draft. But the negotiations have just begun. Political alliances and lobbying will determine the final language to be voted upon before the law goes into effect 1 January, 2013. Garat called the reform draft “cowardly.” He said the commission succumbed to pressure from environmentalists and biased media “without taking into consideration the repercussions on the fishing sector.” In his view, the state of the fish stocks is not as “catastrophic” as commission officials appear to believe. Yet it seems the industry’s efforts have staved off its worst nightmares. Nothing came of ambitions to make overfishing a crime, as happened in the US under the Magnuson-Stevens Act, or to require quotas be consistent with what scientists say is biologically sustainable. There was no proposal on how to limit the oversized fishing fleet or to implement quotas in the fishing agreements with foreign countries. EU’s top fisheries official, commissioner Maria Damanaki, told ICIJ her proposal is “radical.” She said Brussels will stop directly subsidising the industry. “Now we are going to give money in a very prudent way and under very strict conditions,” she said. “And we are going to ask for paybacks in the case of illegal fishing.” Damanaki also highlighted proposed changes in the fishing partnership agreements. “We are going to call them sustainable fisheries agreements because we're going to fish only for the surplus — if there is any surplus,” she said. “Also, we're going to respect human rights in these areas.” Given the hype, Green party MEP Loevin said, “I had expected a clause on human rights.” But the human rights clause originally in the legislative text was missing from the final proposal. Loevin ran for office on a ticket pledging to change the fishing policy. She said the proposal is a lot less radical than she had hoped - especially as the coming negotiations will water it down even more. “The law can't allow for politicians to compromise with the environment when long-term environmental goals clash with short-term profit,” she said. Ernesto Penas Lado, director of the European Commission’s fisheries policy unit, said the mindset in Spain and among fishing nations globally is that no single country feels responsible for the fate of the fish in the sea. “It’s the tragedy of the commons,” he said. “Because the resources belong to no one, they belong to everyone.” In the EU, 27 countries have to come to a consensus on a common fishing policy. There’s no mentality of making a sacrifice for preservation, Penas said. “People think: Whatever I do not fish, my neighbor will.”

Spain's Gold Rush

 

Magdalena Gómez knows the solution to her hometown's suffering. Like roughly 20% of the adult population in Tapia de Casariego, the 27-year-old mother of two is unemployed. She has seen many of her neighbors, desperate for work, move away from this corner of northwestern Spain in search of opportunities in bigger cities. Which is why, even though she knows that a sizeable portion of Tapia is opposed to it, Gómez supports the construction of a new mine. "We don't have anything else here," she says. "We need that gold." There's a gold rush under way in northwestern Spain, and Tapia is just one of the places trying to figure out what to do about it. With gold prices skyrocketing, deposits that have lain untouched for decades, if not centuries, are suddenly looking awfully appealing to international mining companies. And with the Spanish economy in profound crisis, the jobs that those companies promise — even if they're not permanent — are looking just as irresistible. But as the controversy dividing the town of Tapia suggests, not everyone is convinced that the benefits are worth the risks.

Spain's fishy practices cast shadow on seas

 

Some quotes stay with you forever. One that's stayed with me came from Rafael Centenera, a general assistant director in Spanish fisheries ministry, when I interviewed him in Vigo, Europe's busiest fishing port, in 2007. "For sure we are friends of fish," he said. "But still more, we are the friends of fishermen." The reason these 16 words have stayed with me is that they encapsulate perfectly the approach to managing fisheries that has held sway for many years in most of Europe and indeed much further afield. What it implies is that a bit of restraint and conservation is fine - so long as it doesn't get in the way of fishermens' profits. What that stance implies in Spain has been laid out more clearly than ever in a new report from the International Consortium of Investigative Journalists (ICIJ). According to their analysis, Spanish fishing has been subsidised to the tune of 5.8bn euros ($7.8bn, £5bn) since 2000. Those subsidies have spanned the scrapping of old boats and the building of new ones, and just about everything in between. And the number is so high that one in every three fish landed by Spanish boats is paid for in subsidy, ICIJ calculates. European fisheries are a tangled business To anyone who's familiar with the issues, the findings won't come as any surprise; but it is nevertheless striking to have the scale of the subsidies laid out so starkly. Incidentally, on that same trip to Vigo, everyone connected with the industry claimed there were no subsidies, that everything had been ended. One skipper then undermined the case by telling me how little he had to pay for his diesel. The website fishsubsidy.org has also documented the scale of public support across the EU. The world's fishing fleets are just too big, a number of reports have concluded Among other things, it has produced a list of vessels that were first subsidised in renovation, and then in destruction. In one Spanish example, money was awarded to the boat Mikel Deuna Primero for modernisation. Just 17 days later, more money was allocated for scrapping it. The ICIJ report also mentions that fishermen found guilty of fraud or other offences have continued to receive subsidies. And this theme is taken up in another new report, this time from Greenpeace. It concludes that a single family of fishing barons has amassed about 16m euros in subsidies, despite a series of arrests and convictions for offences such as smuggling, illegal shark-finning and falsifying records. Maria Damanaki, Europe's fisheries commissioner who's leading moves to reform the Common Fisheries Policy (CFP), says the accusations are being investigated. World leader Spain isn't the only country that supports its fishing industry with subsidies that in theory do not exist. Ernesto Penas Lado, director of policy and enforcement at the European Commission's Directorate-General for Maritime Affairs and Fisheries, tells the ICIJ: "Spain has earned its bad reputation; the problem is others don't have the reputation, and deserve it just as much." But if European fisheries are to be put on a sustainable footing, Spain is the key nation. That's partly because it operates by far the bloc's largest fleet, and partly because it traditionally leads the process of political lobbying designed to ensure that authorities prioritise fishermen (at least, the big industrial companies that organise the lobbying) above fish in their hierarchy of friendship. But there's a huge disconnect here; because ultimately, keeping fishing at unsustainable levels is anything but friendly to fishermen. Fishing methods have moved on - but regulation appears stuck in the dark ages As the World Bank made clear a few years ago in its Sunken Billions report, the huge overcapacity of the world's fleets actually make the industry much less profitable, with about $50bn being poured into the sea every year. Cutting the overcapacity and allowing stocks to recover will in the end make for a financially healthier proposition. That's a reality that the authorities in Spain (and other countries) have routinely ignored. The situation has barely changed in years, with changes wrought in long-term management plans for species such as cod just a drop in the ocean. CFP reform - due to be completed in 2013 - is the biggest opportunity to put things right that there has been in years, and the biggest there is likely to be for many more. Yet pressure for reform from the "usual suspects" such as Greenpeace frankly appears unlikely to bring about major change, because the pressure has been there for years and has pushed governments only a small distance. So what might make a difference? One window of opportunity could be the financial mess in which Spain finds itself - not on the scale of Greece, but mentioned whenever the "who's next after Greece?" question gets asked. Some of its economic indicators are around the European average, but 20% unemployment is anything but - the highest in the bloc, in fact. If research is showing that cutting fishing capacity would increase revenues, why not demand Spain trims its industrial fleet as a condition for economic aid? If that brings just one of the World Bank's sunken billions into Spanish ports every year, that's one less billion the rest of the eurozone would have to find. The other window is surely provided by that unemployment figure. An industry that favours big industrialised fleets with a powerful lobby over small-scale, artisanal operations is inherently less sustainable from an ecological point of view, because fishermen who do not have the capacity to move somewhere else when stocks are depleted are more likely to look after their fishing grounds. It's also much worse socially. Globally, artisanal fishing snares less than half the world's total catch, yet provides 90% of the jobs. So a switch from large-scale industrialised fleets to small-scale localised effort would create employment, as well as increasing the chances of creating a more sustainable industry - which in turn means more profits down the line. Sounds like a way to be a better friend to both fish and fishermen; but don't hold your breath.