Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07MADRID1262, MADRID WEEKLY ECON/AG/COMMERCIAL UPDATE REPORT -

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07MADRID1262.
Reference ID Created Released Classification Origin
07MADRID1262 2007-06-25 16:23 2011-08-24 16:30 UNCLASSIFIED Embassy Madrid
VZCZCXRO5222
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHMD #1262/01 1761623
ZNR UUUUU ZZH
R 251623Z JUN 07
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 2873
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHLA/AMCONSUL BARCELONA 2853
UNCLAS SECTION 01 OF 02 MADRID 001262 
 
SIPDIS 
 
SIPDIS 
 
EUR/WE 
 
E.O. 12958: N/A 
TAGS: EAGR ECON EFIN EIND ELAB ETRD TBIO SP EINV
UK, SMIG 
SUBJECT: MADRID WEEKLY ECON/AG/COMMERCIAL UPDATE REPORT - 
JUNE 18 
 
 
MADRID 00001262  001.2 OF 002 
 
 
ECON:  Weakening Spanish Economy 
ECON: GoS to have Budget surplus for the 4th year 
EINV/EFIN: Spain's big banks selling off real estate and debt 
EAIR: Spanair for sale 
ENRG: Miscalculation causes debate over electricity prices 
EAGR: Olive production hits record highs 
SOCI: Madrid makes top 30 most expensive city list 
ECON: Taxes in Spain 
 
 
THE STAGE IS SET FOR THE BEGINNING OF THE END OF THE ECONOMIC 
BOOM 
 
1. (U) Andrew Garthwaite, Chief Global Equity Strategist, 
summarized local opinion in an editorial about the weakening 
Spanish Economy.  Garthwaite believes that Spain's economic 
boom was caused by the ECB interest rate being too low for 
Spain's unique economic circumstances.  Garthwaite believes 
that as interest rates trend upward this will have a negative 
effect on consumers who have 75% of their debt at floating 
rates. 
 
2. (U) Garthwaite further points out a number of potential 
weaknesses in the Spanish economy.  First, both businesses 
and Spanish consumers have too much debt.  Second, the ratio 
of housing prices to wages is too high implying that housing 
is overvalued.  Third, too much of the Spanish economy (20% 
of total, and 33% of growth) is dependent upon in the real 
estate sector.  Spain is also losing its competitiveness in 
labor due to growing unit labor costs relative to other EU 
countries.  Finally, Spain's stock market appears over 
valued, including the blue-chip IBEX index. 
 
3. (U) Despite these warning signs, Garthwaite believes that 
with government debt being relatively low at 21% of GDP, and 
continuing immigration, Spain should have the flexibility to 
adjust smoothly to the end of its boom and avoid recession. 
(Note: Most Embassy contacts in the private sector continue 
bullish on the economy has been overwhelmingly optimistic. 
Despite the obvious existence of "weaknesses" and the 
weakening housing market, our contacts tell us that the 
Spanish economy will avoid serious negative repercussions. 
(June 14, Financial Times) 
 
BUDGET SURPLUS DESPITE TAX INCREASE 
 
4. (U) The GoS reports that tax revenues in Spain are 
expected to rise by 7% next year and will lead to a budget 
surplus for the fourth consecutive year.  Despite this 
optimistic news, the government reports that it wishes to 
continue to be prudent on fiscal matters and maintain a 
balanced budget.  GoS officials are concerned that increases 
in social security costs and other social spending will 
stress the spending side of the ledger.  The European 
Commission indicates that Spain will see a budget surplus of 
1.4% of GDP in 2007, a much more optimistic prediction than 
GoS' 7% estimate. 
 
SPAIN'S BIG BANKS SELLING OFF REAL ESTATE AND DEBT 
 
5. (U) Following a trend among large banks, Bank of Santander 
has decided to sell off nearly all of its real estate, mostly 
company offices.  In what will be the largest real estate 
sale ever in Spain, Bank of Santander expects to make a 
profit of about 1.4 billion euros on properties worth an 
estimated 4 billion euros.  (Comment. Presumably to help pay 
for proposed acquisition of Banco Real of Brazil and Banca 
Antonveneta of Italy.) In a similar move, BBVA announced that 
they decided to sell most of its offices in Bilbao and Madrid 
in an effort to relocate its various offices to a centrally 
located headquarters in Madrid. 
 
6. (U) In other news, BBVA has decided to auction off 720 
million euros of delinquent debt in order to increase 
liquidity as well as escape an anticipated rise in delinquent 
debt in Spain.  This follows a 2005 Banco Santander move to 
sell off a Spanish record 1.4 billion worth of delinquent 
accounts.  Banks are also considering selling some of their 
current mortgage loans, also in anticipation of an increased 
risk of delinquency of payment in that sector. 
 
SPANAIR FOR SALE 
 
7. (U) The Scandinavian airline SAS has announced that it 
will sell Spanair.  Spanair Spain's second biggest airline, 
has not been profitable under SAS and has generally been 
problematic for the company.  Gonzalo Pascual, the current 
Spanair Chairman, and also president of Marsans said that he 
 
MADRID 00001262  002.2 OF 002 
 
 
wants to launch a full takeover and will use the funds 
generated from the recent sale of Marsans' cruise business to 
Royal Caribbean.  Pascual was one of the original founders of 
the twenty five year old Spanair. 
 
DEBATE ON FUTURE ELECTRICITY PRICES 
 
8. (U) Last week, the Ministry of Industry in conjunction 
with the National Commission on Energy announced a 1.8 
percent hike for August.  GoS recently discovered that 
Spanish energy firms had erroneously overcharged clients in 
2006 to the tune of 1.1 billion euros (a result of an 
accounting issue involving emission credits).  Energy 
companies will feel the affect of this miscalculation 
presumably as the debate on energy prices continues to gain 
momentum. 
 
OLIVE PRODUCTION HITS RECORD HIGH 
 
9. (U) Olive production has reached record levels, according 
to the Olive Oil Agency in a record harvest.  The large 
supply has pushed down prices domestically and of Spanish 
exports of olive products. 
 
MADRID MAKES THE TOP 30 MOST EXPENSIVE CITIES LIST 
 
10. (U) Madrid and Barcelona are two of the 30 most expensive 
cities in the world for foreigners employed in a foreign 
company according to a study from Mercer Human Resource 
Consulting.  Madrid occupied position 53 last year and jumped 
to 26th place.  Barcelona moved up 25 places from last years 
standings up to 31.  The average monthly rent for an 
unfurnished two bedroom apartment in Madrid is 1,400 and 
1,500 euros in Barcelona.  Whereas in Moscow, the city that 
holds the number 1 ranking, average monthly rent is 3,036 
euros.  The reason for this showing is attributed to the 
strength of the euro and other European currencies that have 
caused European cities, not only in Spain, to have scaled 
positions. 
 
TAXES IN SPAIN 
 
11. (U) In 2006 Spain's tax percentage climbed to 36.52% of 
GDP, although it still remains below the EU average of 41.2%. 
 This figure has been rising at about 1% per year throughout 
Zapatero's term and is a product of Spain's economic boom and 
reduction in unemployment.  Although this economic indicator 
gives no evidence of an economic slowdown, it is considered 
too early for the effects of a slowdown to have shown up in 
Spain's tax revenues. 
AGUIRRE