Zapatero re-elected as Spanish economy falters

Socialist Prime Minister Jose Luis Rodriguez Zapatero announced a new government on Saturday after winning the confidence of the Spanish Parliament. But economic clouds are gathering fast over the new, female-dominated cabinet.

Zapatero won the confidence of the Spanish Parliament on Friday (11 April), securing a majority of 169 votes with support of his own Socialist Party, the PSOE. Out of 350 members of Parliament, 158 voted against him while 23 abstained.

Speaking before the vote, Zapatero said he would seek the support of other political groups, in particular the centre-right Partido Popular (PP), to back his government’s programme in four areas: the fight against terrorism, institutional reforms, judicial reforms and the preparation of the Spanish Presidency of the EU in the first half of 2010.

Announcing his new government on Saturday (12 April), Zapatero confirmed all the major ministers that formed his cabinet in the previous legislature. The main surprise was the gender balance – nine of the 17 ministers appointed are female.

“I feel very proud that there are more women ministers than men,” said Zapatero after announcing his new cabinet.

But the country’s economic problems will soon assume centre stage again, as the economic conditions are worsening fast due to the country’s particular exposure to the housing crisis.

On Wednesday, the International Monetary Fund (IMF) predicted the economy would grow by 1.8% in 2008 – down from 3.8% in 2007 – with the slowdown expected to continue in 2009. Meanwhile, inflation is currently estimated at 4%, according to the IMF.

But the figures were contested by the Bank of Spain, which forecast economic growth would fall to 2.4% in 2008.

On Sunday (13 April), the re-appointed economy minister Pedro Solbes announced that Spain would spend 10 billion euros a year ($15.8 billion) to stimulate the economy and soften the economic slowdown expected from the housing crisis.

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