Euphoria and Despair in Spain

My first impressions in Spain last week were of a people in anticipation – full of hope, excitement, and nervous energy.  In other words, eager to discover what providence has in store.  And this energy erupted into celebration with the Spanish victory at the 2010 World Cup.  Thousands of people streaming into plazas in every town in Spain, waving flags and shirts, blowing whistles and car horns, evading the police to climb atop the statue in the middle of the plaza, and (most inexplicably for me) to jump in to bathe in the fountain.  Thousands of people chanting “Yo soy espagnol, espagnol.. “  (I am Spanish, Spanish…) – an identity  frequently negated in many regions of Spain. The sweet taste of victory.

Yet, by the end of my week, the celebratory oasis was covered by the whirling sands.  Celebration after celebration was organized to keep the euphoric mood, but the reality of unemployment tearing through the joyous banners.  The themes I heard talked off most often –

• ·         20-24.5% unemployment (depending on whose numbers you use)
• ·         7+% paycut recently implemented for various civil servants
• ·         reduction in some pension benefits
• ·         30-40% fall in real-estate prices in some parts of Spain

And I could hear the real emotion in people’s voice (from taxi driver, to museum guide, to homeowners on the coast, to private sector friends) as they expressed uncertainty and despair for the future.  Real estate prices, people say, are no longer falling because nobody is cutting prices when nobody is buying anyway.  One taxi driver estimated his revenues have fallen by 30% since 2008, his effective wage rate fallen by 40-45% since he works much longer hours now. And thinks it will be 5+ years before things get better. And the stories go on and on..

As I asked about government and policy the near-unanimous answer is that the government does not get it and has been engaged in denial and crony capitalism for several years.  People would “short the Zapatero government” if it were a financially traded stock.  And they are all girding for deeper austerity than public policy discourse would suggest.

I hope “La Roja” (the name for the soccer team) has a few more moments of euphoria to give to the country. Maybe they need to go on the year-long tour across Spain with the World Cup trophy as some are requesting….