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 08MADRID1101, MADRID WEEKLY ECONOMIC UPDATE - OCT 13-17

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. #08MADRID1101.
Reference ID Created Released Classification Origin
08MADRID1101 2008-10-17 19:50 2011-08-24 16:30 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Madrid
VZCZCXRO8514
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHMD #1101/01 2911950
ZNR UUUUU ZZH
P 171950Z OCT 08
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC PRIORITY 5457
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAS/AMEMBASSY ALGIERS 4020
RUEHRB/AMEMBASSY RABAT 6118
RUEHLA/AMCONSUL BARCELONA 3605
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
UNCLAS SECTION 01 OF 02 MADRID 001101 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/WE, EEB/IFD/OMA, EEB/ESC/IEC 
TREASURY FOR OIA/OEE/W.LINDQUIST 
DOE FOR EERE 
 
E.O. 12958: N/A 
TAGS: ECON ECPS EFIN EINV ELAB ENRG SP PGOV
SUBJECT: MADRID WEEKLY ECONOMIC UPDATE - OCT 13-17 
 
REF: 08 MADRID 1080 
 
MADRID 00001101  001.2 OF 002 
 
 
CONTENTS 
 
ECON/EFIN: GOS, Following Eurozone Lead, to Guarantee Bank 
Borrowing 
ECON/PGOV: President Zapatero and Opposition Leader Rajoy 
Discuss Economic Measures in Historic Meeting 
ECON: Economic Status Update - Inflation down, but Housing 
Market Downturn Still a Problem 
EINV: Santander Buys Remaining 75% of U.S. Bank 
EFIN: Chairman of Spain's Largest Bank Speaks Out on 
Financial Market Turmoil 
EFIN: Spaniards Affected By Lehman Brothers Bankruptcy 
Protest Spanish Banks 
 
 
GOS, Following Eurozone Lead, to Guarantee Bank Borrowing 
 
1. (SBU) President Zapatero announced October 13 that the GOS 
will guarantee up to 100 billion euros in bank borrowing this 
year.  This initiative is part of a decree approved that day 
by the Council of Ministers that incorporates measures agreed 
over the weekend by heads of state of the euro nations.  The 
decree also includes a "preventative" clause allowing the GOS 
to buy equity in banks if necessary.  Zapatero echoed Second 
Vice President and Economy/Finance Minister Solbes' October 
12 statement that he did not think any Spanish banks would 
need the GOS to purchase equity.  Perhaps heeding criticism 
that he has been overly optimistic during Spain's growing 
economic difficulties, Zapatero said that the recovery of 
economic activity would take time and effort, because the 
situation was "very grave."  In a Congressional hearing the 
following day, Zapatero warned of likely mergers or 
restructurings of smaller Spanish banks and savings banks 
(cajas). (Embassy, All Media, 10/14/08, 10/15/08) 
 
President Zapatero and Opposition Leader Rajoy Discuss 
Economic Measures in Historic Meeting 
 
2. (U) During a historic meeting October 14, President 
Zapatero and opposition Partido Popular leader Mariano Rajoy 
discussed measures to address Spain's flailing economy. 
Zapatero and Rajoy's relationship to date has been 
characterized by partisan and bitter exchanges, especially 
regarding the state of the economy.  During this rare 
coming-together, Rajoy conditioned his support for Spain's 
financial markets measures on greater oversight on the 100 
billion euro inter-bank loan guarantee fund and the 30-50 
billion euro asset/equity fund (ref).  Zapatero agreed to 
Rajoy's demand, committing to greater transparency, rigor, 
and oversight.  The two leaders also agreed to work together 
over the next two months to develop a bi-partisan plan on 
economic structural reforms, an area in which the two parties 
have traditionally been at odds.  Despite these significant 
agreements, Rajoy and Zapatero continued to be in opposition 
on the 2009 proposed budget.  Zapatero's public statement 
after the meeting was one of optimism, Rajoy's was one of 
cautious expectations.  (El Pais, 10/15/08) 
 
Economic Status Update - Inflation down, but Housing Market 
Still a Problem 
 
3. (U) Economic information from the past week (October 
13-17) indicates that Spain's economy continues to face 
significant challenges.  According to Spanish real estate 
appraisal company TINSA, the glut of unsold new properties 
from Spain's housing bubble will likely reach 930,000 by the 
end of 2008, a level much higher than earlier anticipated. 
Related to the residential construction market, cement 
consumption is down from the year before by 25% in the first 
9 months of 2008.  In a radio interview October 16, Minister 
of Labor Celestino Corbacho stated that negative job growth 
will continue to occur in the upcoming months (latest 
estimate for Spain's unemployment rate is over 11 percent). 
In more upbeat news, the National Institute of Statistics 
reports that Spain's September inflation rate (CPI) decreased 
by -0.4 from the year before to 4.5%.  GOS expectations are 
that this rate will continue to decrease over the upcoming 
months, ending the year at 3.5%.  (El Pais, Confidencial, 
Cinco Dias, 10/14/08-10/17/08) 
 
MADRID 00001101  002.2 OF 002 
 
 
 
Chairman of Spain's Largest Bank Speaks Out on Financial 
Market Turmoil 
 
4. (U) According to Emilio Botin, Chairman of Banco 
Santander, the financial market crisis is a manifestation of 
various excesses and cannot be blamed on any one market (such 
as the U.S.) or on any one cause.  This assertion, publicized 
widely in the Spanish press, is being portrayed as a 
contradiction of President Zapatero's statement blaming the 
U.S. for the current economic malaise. Botin praises the 
actions of the Spanish government and eurozone leaders, but 
repeats the message of Second Vice President and Minister of 
Economy Pedro Solbes in saying that Spanish banks are faring 
well and do not need the GOS to take ownership stakes as 
other governments have done.  Botin also emphasizes the 
importance of liquidity, avoiding moral hazard, and 
reinforcing transparency and supervision.  Comment: Botin has 
a strong standing in Spain, and any comments made by him 
carry significant weight in the local arena. His comments 
were taken from a recent speech and an opinion piece he wrote 
in the Financial Times. (All Media, 10/16/08, 10/17/08) 
 
Santander to Buy Remaining 75% of U.S. Bank 
 
5. (U) On October 13, Banco Santander announced that it would 
purchase the 75% it did not already control of the 
Pennsylvania-based Sovereign Bank.  The purchase will be 
carried out by a stock swap of several billion euros. 
Santander had paid about $2.4 billion for its previous stake 
in Sovereign, plus a $1 billion capital increase earlier this 
year.  Sovereign has suffered from poorly performing 
mortgages and auto loans and the government takeover of 
Fannie Mae and Freddie Mac, in which it held stock.  It has 
750 branches and 12,000 employees in the northeastern U.S. 
(El Pais, 10/14/08, 10/14 Santander press release) 
 
Spaniards Affected By Lehman Brothers Bankruptcy Protest 
Spanish Banks 
 
6. (U) On October 13, between 50-100 protestors gathered in 
front of Spain's central bank (Bank of Spain) to demand an 
investigation into Spanish banks for selling Lehman Brother's 
bonds to low risk profile investors and not mentioning these 
investments.  Earlier in September, the Bank of Spain had 
asserted that Spanish banks had minimal exposure to Lehman 
Brothers and remained healthy.  However, recent news about 
Banif's exposure, which some speculate is as high as 800 
million euros, has caused concern about the health of that 
particular bank.  (El Pais, 10/14/08; Confidencial, 10/17/08) 
 
 
 
 
AGUIRRE