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European Affairs Institute of Technology Sligo – Institiuid Teicneolaiochta Sligeach Spain Simulation Game – Worksheet 1 Sligo 12.05.2017 Group members Name Studentnumber Magali Bordeneuve S00065427 Maxime Arnaudo S00065319 Alvaro Carbonero S00073992 Rolf Brenner S00065470 CONTENTS 1 GENERAL OVERVIEW AND ECONOMY ...................................................................................... 5 1.1 2 1.1.1 Industries ......................................................................................................................... 5 1.1.2 Services sector ................................................................................................................ 5 1.1.3 Role of agriculture ............................................................................................................ 5 1.1.4 Main trading partners ....................................................................................................... 5 1.1.5 Role of FD ........................................................................................................................ 6 1.2 Present economic situation ..................................................................................................... 6 1.3 Economic developments over the last decade ........................................................................ 6 1.4 Challenges facing the spanish economy ................................................................................. 7 1.5 Comparison with two other similarly sized states .................................................................... 7 POLITICS ........................................................................................................................................ 9 2.1 3 4 Key statistics ............................................................................................................................ 5 History and geography of the state.......................................................................................... 9 2.1.1 History .............................................................................................................................. 9 2.1.2 Geography: ...................................................................................................................... 9 2.2 Politic developments over the last decade ............................................................................ 10 2.3 Particularities of its government and political conditions ....................................................... 10 2.3.1 Particularities: ................................................................................................................ 10 2.3.2 Political conditions ......................................................................................................... 11 THE COUNTRY IN QUESTION AND THE EU ............................................................................. 12 3.1 History of its relationship to the EU ....................................................................................... 12 3.2 Cultural factors....................................................................................................................... 12 3.3 Voting weight and coalitions of like-minded states ................................................................ 12 3.4 Attitude to New Constitution .................................................................................................. 12 3.5 Levels of support for the EU and other further european Integration .................................... 13 3.6 Environmental Minister .......................................................................................................... 13 WASTE POLICY IN THE STATE AND IMPLEMENTATION OF EU DIRECTIVES .................... 14 4.1 Present waste policy in Spain ................................................................................................ 14 4.2 SWOT .................................................................................................................................... 14 4.2.1 Strengths ....................................................................................................................... 14 4.2.2 Weaknesses .................................................................................................................. 15 4.2.3 Opportunities ................................................................................................................. 15 4.2.4 Threats ........................................................................................................................... 15 4.3 Packaging Waste Directive - Directive 94/62/EC and 2004/12/EC ....................................... 16 TABLE OF FIGURES Picture 1: Map of Spain ......................................................................................................... 9 Picture 2: Flag of Spain ........................................................................................................11 1 General overview and Economy 1.1 Key statistics Spain has in 2005: a GDP of $ 1 029 trillion (thirteenth world rank) - an inflation rate of 3.4% - an unemployment rate of 10.1% - and a working population of 20.67 million 1.1.1 Industries Catalonia, the Basque country and Madrid are the three most industrial areas of Spain. 1.1.2 Services sector The service of transport in Spain is diversified; it is possible to move by train, plane, boat or in car. The communication in Spain is developed; 38.646.800 people in 2004 had a telephone mobile cellular and 17.142.198 used internet in 2005.1 1.1.3 Role of agriculture Spain is the first country in the producing olive oil world in 2006, as well as, the second producing European country of cotton and third producing European country of tobacco. 1.1.4 Main trading partners The most important partners of Spain are countries of Western Europe like France or Germany.2 1 https://www.cia.gov/cia/publications/factbook/geos/sp.html 2 http://countrystudies.us/spain/57.htm 1.1.5 Role of FD The role of FDI (Foreign Direct Investment) is to restructure, develop and modernize the economy of Spain.3 1.2 Present economic situation Today, the Spanish economy is the fifth of European Union and the fifteenth of the world. She is developing with the European Union. 1.3 Economic developments over the last decade By all accounts, Spain has experienced an economic boom over the last decade. It has “continued its prolonged economic expansion” (International Monetary Fund) and “weathered the international slowdown” (Organisation for Economic Co-operation and Development) making it “one of Europe’s best-performing economies” Economic growth—between 3 and 4 percent a year and twice the European average—has made Spain the world’s eighth-largest economy, up from 16th place 10 years ago. Companies such as the fashion house Zara, phone operator Telefónica, construction giant Ferrovial and real estate developer Metrovacesa have become globally recognised names. The IMF has “commended” both José María Aznar’s right-wing Popular Party government (1996-2004) and the current administration of José Luis Rodríguez Zapatero’s Socialist Party (PSOE) for implementing reforms “opening the economy, enhancing its flexibility, and establishing stability-oriented policy frameworks.” Spain’s workers earn an average of €1922 (US$2,480) per month before tax and social security payments. Nearly half of that income is spent on accommodation. But whilst wages have stagnated, the price of houses has doubled in price in real terms over the last decade, stimulated, in part, by extremely low interest rates and increased investment in real estate following the 2001 stock market crash. As a result, workers have been sinking deeper into debt. Household indebtedness has risen to more than 110 percent of income and approaches US levels. The most recent data shows the amount of outstanding mortgage loans stands at a record €811 billion (US$1 trillion), a rise of 26 percent since last year. As 80 percent of Spain’s population own their own home, many workers are in a vulnerable position should interest rates rise sharply (most mortgages are variable rate) or Spain’s housing 3http://www.regionetdeveloppement.u- 3mrs.fr/pdf/R13/R13_Dupuch_Jennequin_Mouhoud.pdf#search=%22role%20du%20FDI%20en% 20espagne%22 bubble burst. House prices, says a recent Goldman Sachs report, may be overvalued by up to 35 percent.Spain’s increasing inequality exposes as fraudulent the perennial claim that “economic recovery” benefits everyone, even if unequally. The latest statistics show that there has been an enormous transfer of wealth—from the working class to the wealthy elite—in Spain with the backing of both the PP and the PSOE, backed by the Stalinist-led United Left (IU) and Catalan nationalists. 1.4 Challenges facing the spanish economy The current Prime Minister Rodríguez Zapatero has pointed out as matters to be addressed during his administration plans to reduce government intervention in business, combat tax fraud, and support innovation, research and development, but also intends to reintroduce labour market regulations that had been scrapped by the Aznar government. Adjusting to the monetary and other economic policies of an integrated Europe — and reducing unemployment — will pose challenges to Spain over the next few years. According to World Bank GDP figures [3] from 2005, Spain has the ninth largest economy in the world, after Canada, and the fifth largest in Europe, after Italy. There is general concern that Spain's model of economic growth (based largely on mass tourism, the construction industry, and manufacturing sectors) is faltering and may prove unsustainable over the long term. The first report of the Observatory on Sustainability (Observatorio de Sostenibilidad) — published in 2005 and funded by Spain's Ministry of the Environment and Alcalá University — reveals that the country's per capita GDP grew by 25% over the last ten years, while greenhouse gas emissions have risen by 45% since 1990. Although Spain's population grew by less than 5% between 1990 and 2000, urban areas expanded by no less than 25% over the same period. 1.5 Comparison with two other similarly sized states COUNTRY POPULATION AREA (sq km) GDP ($ trillion) Spain 40.397.842 504.782 1.029 France 60.876.136 547.030 1.816 Italy 58.133.509 301.230 1.698 SOURCES http://fr.wikipedia.org/wiki/%C3%89conomie_de_l'Espagne#Industrie http://fr.wikipedia.org/wiki/Portail:Espagne http://www.regionetdeveloppement.u3mrs.fr/pdf/R13/R13_Dupuch_Jennequin_Mouhoud.pdf#search=%22role%20du%20FDI%20en% 20espagne%22 http://countrystudies.us/spain/57.htm https://www.cia.gov/cia/publications/factbook/geos/sp.html 2 Politics 2.1 History and geography of the state 2.1.1 History 1873: 1st Spanish Republic - 1931: 2nd Spanish Republic - 1936: Uprising of the Spanish Popular Front - 1936-1939: Civil war under the dictatorship of the General Francisco Franco - 1975: Death of the General Franco - New king, Juan Carlos 1st, installation of the democracy - 1986: Entry of Spain in European Union 2.1.2 Geography: Spain is a country located at the south west of Europe; between the Pyrenees the border with the France, Atlantic Ocean, Portugal, the Straits of Gibraltar the border with Africa and Mediterranean sea. Picture 1: Map of Spain Spain has three islands: Balearic Islands and Chafarine Islands in the Mediterranean Sea and Canary Islands in the Atlantic Ocean. The principal cities are Madrid (the capital) with 3.162.304 people and Barcelona with 1.593.075 people. 2.2 Politic developments over the last decade In March 1996, José María Aznar's People's Party (PP) was the most voted for party, winning almost half the seats in the Congress. Aznar moved to liberalize the economy, with a program of privatizations, labor market reform, and measures designed to increase competition in selected markets, principally telecommunications. During Aznar's first term, Spain qualified for the Economic and Monetary Union of the European Union. During this period, Spain participated, along with the United States and other NATO allies, in military operations in the former Yugoslavia. Spanish planes took part in the air war against Serbia in 1999 and Spanish armed forces and police personnel are included in the international peacekeeping forces in Bosnia (IFOR, SFOR) and Kosovo (KFOR). President Aznar and the PP won reelection in March 2000, obtaining absolute majorities in both houses of parliament. This mandate allowed Aznar to form a government unencumbered by the coalition building that had characterized his earlier administration. Aznar is a staunch supporter of transatlantic relations and the War on Terrorism. For the March 2004 elections Aznar named First Vice President Mariano Rajoy to replace him as the People's Party candidate. However, in the aftermath of the March 11 terrorist bomb attacks in Madrid, the PP lost the 2004 elections to the Spanish Socialist Workers' Party (PSOE) and its leader José Luis Rodríguez Zapatero. Rodríquez Zapatero was elected prime minister with the votes of PSOE and a few minor parties. He selected the first Spanish government ever to have the same number of male and female ministers 2.3 Particularities of its government and political conditions 2.3.1 Particularities: In Spain, there are four languages, the official is the Castilian in all of the country and the regional ones are Catalan in Catalonia (North East of Spain), Galician in Galicia (North West of Spain) y Basque in the Basque country (North of Spain). The Castilian represent 74% of the language of the country, the Catalan 17%, the Galician 7% and the Basque 2%. Spain is composed of “17 autonomous community”: “Andalucia, Aragon, Asturias, Baleares (Balearic Islands), Ceuta, Canarias (Canary Islands), Cantabria, Castilla-La Mancha, Castilla y Leon, Cataluna, Comunidad Valenciana, Extremadura, Galicia, La Rioja, Madrid, Melilla, Murcia, Navarra, Pais Vasco (Basque Country)” 4 4 https://www.cia.gov/cia/publications/factbook/geos/sp.html 2.3.2 Political conditions The Spanish government is a parliamentary monarchy. The president of the state is the prince Felipe since the death of his father, the king Juan Carlos. The first minister is Jose Luis Rodriguez Zapatero. Spain is called too “Kingdom of Spain”. The Spanish flag has two principal colours: yellow and red. There is also on the left middle of the flag “the national coat of arms”. Picture 2: Flag of Spain SOURCES: http://www.herodote.net/indxespagne.htm http://fr.wikipedia.org/wiki/Espagne https://www.cia.gov/cia/publications/factbook/geos/sp.html 3 The Country in question and the EU 3.1 History of its relationship to the EU With the death of the fascistic dicator Franco the spanish people build a free and democratic state. The political system of spain is a parliamentary monarchy. In 1977 Spain entered into negotation to accede the EU.In 1986 Spain joined the EU. The membership in the EU had a positive economic and a political effect. Spain could adope the euro in cause of the strict domestic finance policy in 1999. 3.2 Cultural factors In safty policy Spain stands for a close cooperation between the EU, the NATO and the USA. Spain is involved in the military actions and so called “peacekeeping” missions in Bosnia, Macedonia, Kosova, Haiti and Afghanistan. 3.3 Voting weight and coalitions of like-minded states Institution Seats / Total seats / % voting voting European Parliament 54 731 7,38 Council of european union 27 321 8,41 Spain and France have a close relationship in fight against terrorism and exchanging in culture and economics. 3.4 Attitude to New Constitution The Spanish vote with 77% for the european constitution. 3.5 Levels of support for the EU and other further european Integration The european integration is one of the spanish foreign policy mainpoint. Spain belongs to the supporters of the european enlargement. The integration of Spain in the EU and the NATO was intense favored by the spanish people. Spain is getting over 8 billion euro more support payments from the EU as they pay in. 3.6 Environmental Minister Cristina Narbona Ruiz SOURCES: Internet: http://www.bpb.de/themen/3JE3UE.0.0.Spanien.html http://www.auswaertiges-amt.de/diplo/en/Laender/Spain.html http://www.europa.eu/abc/governments/spain/index_en.htm http://www.mma.es/portal/secciones/;jsessionid=701AE87D02AC8FB4F53D0E1E4ED0F610 Lexica: Microsoft ® Encarta ® Enzyklopädie 2005 © 1993-2004 Microsoft Corporation 4 Waste policy in the state and implementation of EU Directives 4.1 Present waste policy in Spain In the last 10 years, the Spanish waste production rate has climbed 70%. Currently, roughly 74 % of the waste is being landfilled, 13% is being composted and 11,6% is being recycled. In order to better manage the waste, Spain has established a National Plan for Waste, “Plan Nacional de Residuos”, that is to be put into place between 2000 and 2006. Spain, following the European Union directives, has developed national and territorial plans. The Plan’s primary objectives are to have closed and sealed all landfills that are not in compliance before 2005, construct waste transfer stations, to modify current landfill installations so that they follow the future Directive on landfills and close incineration plants that are not recuperating energy. The Plan also includes reduction of packaging, recycling, use of recycled paper in bulk mailings and organics recycling through composting. But Spain waste policy is based on EU subsidies and it’s the most important problem because which subsidies will be reducing and the challenge is to break this reliance and ensure herself the environmental policies financing. The country has some difficulties to reach the EU targets and particulary in organisation of their rubish dump (the European court of justice condamned Spain about 5 rubish dumps who were illegal in 2003.). Moreover Spain has a lack in his waste management. Currently only glass is separate of the household wastes, there isn’t selective waste. The main evolution in environmental Spain policy is thanks to EU directive and the major measures in this field are an implementation of the EU directive. We can analyse the Spanish waste policy and the implementation of Council directive on packaging waste through SWOT. 4.2 SWOT 4.2.1 Strengths Decoupling of some environmental pressures from economic growth. Developing environmental infrastructure (e.g. water supply, waste water treatment). Environmental legislation has evolved very significantly Some regions implement very advanced environmental policies. Environmental legislation has evolved positively and significantly (major national laws have been enacted, including on packaging waste (1997), waste (1998)). - New network of environmental authorities are important co-ordination mechanisms (between the central government and the autonomous regions). Enforcement activities have increased. Product charges on packaging wastes have been developed and landfill taxes on municipal waste. Regional and local fiscal powers, including for environmentally related taxes, have been increased. Environmental expenditure increased. National sustainable development strategy. 4.2.2 Weaknesses Waste management is a major problem. Improving the cost-effectiveness of the environmental policies and inter-regional coordination. Environmental expenditure increased but there are relatively low. Reliance on subsidies. Spain makes limited use of environmental taxes and other economic instruments to influence behaviour, as it is widely believed that they could affect competitiveness and employment. Some municipalities do not charge for waste services; less than a third of waste collection and treatment costs are recovered countrywide. Penal infringements and confinement sanctions for poor implementation of environmental legislation remain limited. There isn’t clear vision of how to ensure future financing of environmental policies should be developed. A lack of strategic environmental assessment of plans and programmes. 4.2.3 Opportunities EU subsidies Increasing tourism (state income is rising). 4.2.4 Threats EU subsidies will be reducing. Difficulties to reach EU targets. Tourism increasing (waste are rising). 4.3 Packaging Waste Directive - Directive 94/62/EC and 2004/12/EC The European Union is seeking to harmonise national measures concerning the management of packaging and packaging waste to provide a high level of environmental protection and ensure the functioning of the internal market. The Directive covers all packaging placed on the market in the Community and all packaging waste, whether it is used or released at industrial, commercial, office, shop, service, household or any other level, regardless of the material used. Directive 2004/12/EC (amending Directive 94/62/EC) establishes criteria clarifying the definition of the term "packaging". Clear examples are given in Annex I, such as tea bags, which are non-packaging, and the film overwrap around a CD case, or labels hung directly on or attached to a product, which are packaging). This Annex replaces Annex I to Directive 94/62/EC. Directive 94/62/EC provides that the Member States shall take measures to prevent the formation of packaging waste, which may include national programmes and may encourage the reuse of packaging. The Member States must introduce systems for the return and/or collection of used packaging to attain the following targets: no later than 30 June 2001 between 50 and 65 % by weight of packaging waste will be recovered or incinerated at waste incineration plants with energy recovery; no later than 31 December 2008 60 % as a minimum by weight of packaging waste will be recovered or incinerated at waste incineration plants with energy recovery; no later than 30 June 2001 between 25 and 45 % by weight of the totality of packaging materials contained in packaging waste will be recycled (with a minimum of 15 % by weight for each packaging material); no later than 31 December 2008 between 55 and 80 % by weight of packaging waste will be recycled; no later than 31 December 2008 the following recycling targets for materials contained in packaging waste must be attained: 60 % by weight for glass, 60 % by weight for paper and board, 50 % by weight for metals, 22.5 % by weight for plastics and 15 % by weight for wood. No later than 31 December 2007, the European parliament and the Council, acting on a proposal from the Commission, will fix targets for 2009-2014. SOURCES Internet: http://www.oecd.com http://europa.eu/scadplus/leg/fr/s15002.htm http://www.actu-environnement.com/ae/news/1062.php4 http://www.compostnetwork.info/index.php?id=44