It's the economy, stupid!

The Zapatero Government has been dealing with the economy pretty well this last four years. It focused in tackling two serious problems, public debt and productivity, and has dealt with them in a sound manner.
Public debt has been reduced substantially during this term and for the first time Spain enjoys a superavit in general terms in the public finances. In terms of productivity, the Government has increased public investment into R+D, education and has promoted structural changes in the economic sector in coordination with employers and unions. This Government has been the first in Spain to enjoy no union action against it since democracy was restored in 1975.

However, due to escalating oil prices, inflation across Europe has gone up lately and in Spain particularly, 1% higher than the Union's average. It is also true that Spain has grown at a faster rate than most of its European colleagues and created 45% of all the jobs created in the Union in the last four years, quite an achievement you'll have to admit. But escalating fuel prices have also spilled into the domestic economy, namely basic food products, like meat and milk. Furthermore unemployment has gone up in November for the second month in a row.

The Zapatero Government, as did Felipe Gonzalez's in the 80s, has proven the right wing press wrong in thinking that a Socialist government couldn't manage the economy as well as a PP one. Well, they didn't just not make it worse, they actually improve it to macroeconomic levels never seen before in this country. However, the latest economic figures are starting to show in opinion polls. Cadena Ser's weekly Pulsometro shows 60% of Spanish people are very worried about inflation and the general state of the economy and 34% are just worried. It also shows 45% of the people are worried about inflation in the food basket. The Government can argue, as some analysts have done already, that it is up to Brussels to manage inflation under the single currency, but the reality is that in an election year that isn't the most desirable answer. The Pulsometro poll shows that 72% of the people believe the Government isn't doing enough to change the economic situation. The Government should start thinking about the consequences of this situation in March. The economy isn't going to be a big issue this time around, but after four good years of sound economic policy surely PSOE doesn't want to have it against itself due to four bad months. Zapatero's announcement today that he's going to scrap the patrimonial tax is a good first step to reclaim the lead in the economic debate. More should be coming to make sure the economic growth of this term isn't forgotten by later developments.