The economy: PP's lies.

PP has found two months before the general election in the economic slow-down a new argument to attack the Zapatero Governmennt.

Rajoy argued today in COPE, the Church's radio station, that PSOE has blown in these last four years the previous PP government's sound economic indicators.

The reality is very different and Rajoy knows it, here are some arguments of why the Spanish economy is slowing down today.

1) Oil prices are at an all time high. Oil prices are having a great impact on inflation today across the globe. And in Spain is no different. However Rajoy seems to forget that the reason for the escalation of oil prices today is due to the war in Iraq and the instability that suffers the Middle East. The Bush Administration is responsible today for the escalation in oil prices due to the unlawful war his administration undertook in Iraq, and that same war was supported by the PP Government under Aznar and of which Rajoy was Vicepresident. Therefore Rajoy and his party are directly responsible today of inflation in our country.

2) The slow-down in the construction industry, engine of economic growth in Spain, is due to a necessary change in the economic priorities of the Government. The Zapatero Government has focused on switching the Spanish economy to one of sustainable development and diversification, including greater exports, productivity and value-added production (high-tech for example). Many economists have been warning of the possible burst of the construction bubble in Spain, and construction companies have moved swiftly, with that idea in mind, by diversifying their businesses. Ferrovial, ACS, Sacyr or Acciona have entered the energy, services and other industries to prevent the potential burst from affecting their profits. The Government as well has been preventing the burst, happening today in the UK for example, by providing a soft landing. It was the Aznar Government which promoted that kind of unsustainable growth, even today regions under PP (Murcia, Valencia, Madrid) maintain that economic model and are the ones suffering greater from the economic slow-down. PSOE was left no alternative than reforming the Spanish economy to compete with other developed economies as well as protecting the environment.

So there you are, if Rajoy wasn't so prone to lying and hiding the facts, would realise that the Zapatero Government has been modernising the Spanish economy these last four years to make it competitive. And has done so with a GDP growth of over 3.8% as well as creating half of the new jobs in the EU. The economic slow down of these last two months are due to PP's economic policy from 1996 to 2004 based on construction and a war in Iraq that has put oil prices up to an all time high.

Four more years for Zapatero will mean further modernisation of the Spanish economy to compete with those of developed countries such as Germany, Ireland or the Scandinavian countries. A Rajoy Government would mean more of the kind of growth based in speculation and unsustainable development seen in the late 90s and evident today in the regions they still control.