(C/NF) KUDOS FOR REPORTING ON SPANISH ECONOMY

C O N F I D E N T I A L STATE 106750 NOFORN SIPDIS E.O. 12958: DECL: 10/14/2034 TAGS: PINR ECON EFIN SP SUBJECT: (C/NF) KUDOS FOR REPORTING ON SPANISH ECONOMY (C-RE9-02128) REF: A. MADRID 001205 ¶B. MADRID 000071 ¶C. MADRID 000360 ¶D. MADRID 000375 ¶E. MADRID 000552 Classified By: MICHAEL P. OWENS, ACTING DIR, INR/OPS. REASON: 1.4(C). ¶1. (C/NF) WASHINGTON ANALYSTS APPRECIATED REFTELS REGARDING THE RECESSION IN SPAIN AND THE PLAYERS AND FACTORS THAT INFLUENCE SPANISH ECONOMIC POLICY. WE ESPECIALLY WELCOMED YOUR INSIGHTS INTO HOW THE ECONOMIC DOWNTURN IS AFFECTING ZAPATERO AND HIS CABINET AND INTO FACTORS SHAPING SPANISH DOMESTIC ECONOMIC POLICY DECISIONS AND INTERNATIONAL AMBITIONS. YOUR ASSESSMENT OF WHY MADRID INSISTED ON PARTICIPATING IN RECENT G-20 SUMMITS WAS VERY TELLING, AND HELPED FLESH OUT RECENT WRITTEN PRODUCTION ON THIS SUBJECT. INFORMATION ON THE LEADERSHIP DYNAMICS AFFECTING DOMESTIC ECONOMIC POLICY ALSO FEATURED PROMINENTLY IN RECENT ANALYSES OF SPANISH ECONOMIC POLICY DECISIONMAKING. WE ALSO APPRECIATE EMBASSY'S WEEKLY ECONOMIC REPORTS, WHICH HAVE MADE A REAL DIFFERENCE IN EVALUATING THE VULNERABILITY OF THE SPANISH ECONOMY DURING THE GLOBAL ECONOMIC CRISIS. WE WELCOME ANY ADDITIONAL REPORTING ON THE IMPACT OF THE RECESSION ON SPANISH ECONOMIC POLICY AND THE CREDIBILITY OF ZAPATERO AND HIS CABINET, AS TIME AND RESOURCES PERMIT. IN PARTICULAR, WE WOULD APPRECIATE YOUR THOUGHTS ON THE FOLLOWING: ¶A. (C/NF) HOW DO SPANISH OFFICIALS REGARD ZAPATERO'S MANAGEMENT OF THE ECONOMY? IS THE CABINET UNIFIED ON ECONOMIC POLICY? HOW MUCH INFLUENCE DOES MINISTER SALGADO HAVE? DOES THE MORE AUSTERE BUDGET PROPOSED IN LATE SEPTEMBER AFFECT SALGADO'S CREDIBILITY WITH THE PUBLIC, OPPOSITION, AND/OR BUSINESS/FINANCE COMMUNITY? ¶B. (C/NF) HOW DO SPANISH OFFICIALS SEE SPAIN'S ROLE IN INTERNATIONAL ECONOMIC POLICY GROUPS, LIKE THE G-8 AND THE G-20, IN LIGHT OF ZAPATERO'S PARTICIPATION IN RECENT MEETINGS? HOW DOES THE BUSINESS/FINANCE COMMUNITY VIEW SPAIN'S ROLE? ¶C. (C/NF) HOW DO SPANISH OFFICIALS VIEW FRANCO-SPANISH RELATIONS, GIVEN THAT FRENCH PRESIDENT SARKOZY HELPED SECURE A SEAT FOR SPAIN AT THE G-20 AND OFFERED HELP SPAIN PREPARE THE EU PRESIDENCY? DO ANY MADRID OFFICIALS SEE FRANCE AS TRYING TO IMPOSE ITS VIEWS ON SPAIN? ¶2. (U) PLEASE CITE C-RE9-02128 IN THE SUBJECT LINE OF REPORTING IN RESPONSE TO THE ABOVE QUESTIONS. CLINTON