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Thursday, November 24, 2011

postheadericon Spain's Rajoy era opens

Despite a long-predicted landslide victory for Spain’s center-right and pro-business Popular Party, international markets are not joining festivities nor offering a temporary reprieve.  The short-term requires an immediate economic road-map for structural reform.  The long-term necessitates a two-pronged top-down and bottom-up approach for implementation of reform.

The top-down approach entails essential public outreach for transformation.  The new prime minister Mariano Rajoy, and his ministers, must effectively communicate and connect with ordinary Spaniards.  It is essential to explain austerity within the context of global realities and as a collective struggle.  After all, the people are direct stakeholders in the process.  Achieving a broad national consensus is critical.  Responsible leadership must emanate from the top.   

The bottom-up approach involves gradual transformation of the public psyche. Citizens’ economic rights, responsibil! ities and expectations and the state’s obligations and purpose must adapt to new world realities.  Curbing generous labor laws and pension schemes are just the beginning.  Outdated Western illusions of endless prosperity, instant gratification and the almighty state’s endless resources still prevail.  The cradle-to-grave state security system is over. 

Rajoy can claim technically a popular mandate but considerable votes were also against the status quo and the Socialist party’s failings.  His broad message for reform was unambiguous throughout the campaign. Most Spaniards accept tough times lie ahead. 

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