Here's my latest
article on Collier's Magazine.
Spain Again, Seventy Years After
Before leaving Montreal for Madrid a friend gave me a heads-up. He
had traveled to both Russia and Spain this year and told me that the
Spanish police were much worse than their Russian counterparts. He said
that if I was within striking distance of a cop and his truncheon,
whether I was involved in a protest or not, I would be considered fair
game, and also that being with the press or wearing something that said
prensa would not protect me. With 25% of the country out of work and fed
up with the government and its austerity cuts or recortes, the police,
he said, were showing no mercy. Men, women, teenagers, it didn't matter;
if you were in the wrong place at the wrong time you could expect to be
hit. Someone had given them a green light to get the job done the old
fashioned way, and it showed. On the 25th and 26th of September, the
Spanish were shocked to see news reports of the Policia Nacional
savagely clubbing and shooting demonstrators with rubber bullets in
front of the Congreso de los Diputados. For a country that had endured
36 years of Fascist rule, it was a bit much. Police brutality was not
something to be taken lightly, and while the transition to democracy
after Francisco Franco's death had for the most part worked, it didn't
mean that the secret torture chambers and the unmarked graves of the
fascist era had been forgotten. The memories were still there and with
every clash between the police and the protestors, the Spanish could
judge for themselves whether or not anything had changed since the
1930s.
But was history really repeating itself, I thought? Was Spain, as it
struggled to survive in a worldwide economic crisis, on the brink of
something catastrophic? And if so, who or what was to blame and was
there any solution to these problems? Certainly a case could be made
that the country in 2012 has more in common with 1936 then it does with
the period immediately preceding the Wall Street collapse. Before the
crash everyone was making money, and in the small town where I lived in
2006 just east of Malaga, it was obvious why the British had jokingly
renamed the Costa del Sol the “Costa del Crane.” Everyone was building.
There was a mad rush by anyone with any kind of land to sell it as fast
as they could to the developers of the Nuevas Urbanizaciones (the new
subdivisions). They were springing up in an almost Brazilian way
wherever you looked: European favellas complete with structural faults
and in some cases no running water. My own apartment building had been
built on a hill and had a large visible crack dividing the upper section
from the lower section. You could see it in the outside wall, and I
asked one of my neighbors if the structure was actually splitting in
two, but he assured me that it was just the ground that was settling and
that it would take a while.
Like all property bubbles this one didn't last and when it collapsed
the economic engine of the country disappeared with it. Unemployment
skyrocketed, people started to default on their mortgages, and the mood
of the country went south. Since 2008, over 400,000 have been evicted
from their homes and my grandfather would have certainly recognized the
anger and frustration the average Spaniard faced with such bleak
economic prospects. He would have also recognized a government that is
essentially powerless to stop the international forces that are bearing
down on the country, but that at the same time are aiding and abetting
these forces as it soldiers on with the austerity budgets demanded by
the Germans, the IMF, the E. U. and the big banks.
The Andalusian writer, Antonio Muñoz Molina, who was the head of the
Instituto Cervantes in NYC and now teaches at NYU, is not a friend of
the Rajoy government, nor does he approve of its austerity policies.
“There are 6 million unemployed in Spain and many of them have no
government support whatsoever. The government is simply following the
E.U. game-plan and pushing its own right wing agenda.” We were speaking
in a bar near the center of Madrid and I asked him how things had
changed in the last four years. He said that there is an immense sadness
in the people. “Whereas before the crisis there was energy and hope for
the future, now there is none.” At the same time he cautioned that this
generalized feeling of depression could easily change to populism. “For
example, look at the Catalan independence movement. It is their new
fantasy. As a country it would never be viable and in fact it has never
existed as a sovereign state. It has always been a part of Spain. Now
they are saying that their region gives more to Madrid in taxes than it
ever gets back in funding for its social programs. But when the economy
is bad everyone starts to complain about that. The real problem is that
there is too much bureaucracy in Spain. There are simply too many
governments when you add up all the local, provincial, and regional
entities. And all of these governments are redundant and cost money,
because we are looking at a lot of salaries that have to be paid for a
lot of useless bureaucrats. That is what we need to cut, not our health,
education or social programs.”
Strangely enough, Rodrigo Rato, an ex-managing director of the IMF
and a former minister in the conservative Aznar government (PP), agrees
with much of what Molina has to say. They are about as different as you
can be politically but they both believe that the sheer size of
government in Spain has to be reduced if the country is ever to recover
financially. Rato also thinks that Catalan independence is unrealistic,
but not because you can't change the laws (presently it would be illegal
under the Spanish constitution) but for economic reasons. He gave the
example of the port of Barcelona. It is the largest and busiest, not
because it is in Catalonia, but because it is in Spain. Put that port in
an independent country and its business will suffer. He then mentioned
the problems that they would have using the Euro and repaying their
share of Spain's national debt. He did think, though, that the push for
independence was being exacerbated by the bad economy and that the
Catalans were right to a certain extent in expecting more from Madrid.
Unlike Molina, Rato is in favor of the government's austerity policy
as a solution to Spain's economic problems. Still, he thinks that the
government working on its own is not enough. It needs the active support
of the European Central Bank (ECB) as a lender of last resort, similar
to what we have in the USA with the Federal Reserve. This, however,
would require a European banking union, with a unified system of
supervision, he said. I asked him if the Germans would agree to this and
he answered that he thinks so, that eventually they will have to. I
nodded and as he started to explain the need for “mutualizing (bank)
losses on a European level,” I thought that it was actually quite
surreal to hear Mr. Rato talk about the merits of a unified system of
supervision, considering that recently he and thirty others had been
indicted in Spain for banking fraud, falsifying documents, and
embezzlement. As president of Bankia (an enormous Spanish savings bank)
from its creation in 2010 to May of this year when it reported losses of
4.3 billion Euros, it would have been his responsibility, in theory at
least, to have an idea of what was going on where he worked. The
meltdown, after all, was quite a scandal. The bank had to be partially
nationalized by the Spanish government and here in front of me was a man
who had perhaps looked deep into the center of this financial black
hole. A man who supported, without hesitation, a program of austerity
and budget cuts that would never affect him (he is quite wealthy) and
who, as president of Bankia, stood accused of nearly destroying an
institution where tens of thousands of ordinary citizens entrusted their
savings. Every man is of course innocent until proven otherwise, but it
occurred to me that should eventually he be found guilty as charged and
convicted, Spain would have succeeded in doing something that the
United States with all its courts and lawyers seems incapable of doing:
actually bringing to justice one of the bankers responsible for this
huge mess.
Later that day when I met Toni Cantó, an actor turned member of
parliament with the Union Progreso y Democracia (UpyD), he said that if I
had spoken with Rato, then I should know that the money used to bail
out the banks that he was connected with was public (which I knew). But
that this was totally normal in Spain because the two major political
parties are inside the banks (which was something I didn't know). “In
the Cajas de Ahorros (the savings banks) Rato and company were running
the banks, controlling them for their own uses. Making a lot of money
and using them for projects that they could utilize in upcoming
elections. Construction projects, like the city of lights in Valencia,
the Castellon airport, have you heard anything about that? It was built
but it isn't open, because it isn't being used, no one actually flies
there.”
What I needed to understand, said Cantó, was that in Spain half the
banks are private and the other half are public and the political
parties thought of the public banks as a kind of gigantic ATM machine.
“This is true,' agreed Pablo Gallego, one of the founders of Los
Indignados, the Spanish group that was the inspiration for the activists
of Occupy Wall Street, “But part of the reason for this stems from the
fact that after the dictatorship there was a political change, but there
wasn't an economic change. Franco himself said that he had essentially
left the regime intact. And now everyone is talking about this economic
immobility. The same oligarchy that controlled things under Franco is
still in control. The families that ran the banks and the building
industry in Spain when Franco was alive are still there.”
But it gets worse. According to Gallego, many of the leaders of the
present political parties are sons of those who were members of the
Fascist party. “Rubalcaba, the head of the socialist party, is one such
person. For the Falange he was a black sheep, but no one on the left
ever held it against him that his father was a fascist. But this guy now
has a million euros in his bank account so what kind of socialist are
we talking about? People are talking about this. They don't trust these
politicians and they don't trust the system, which in turn favors the
fascist parties in Europe. Look at what is happening in Greece with
Golden Dawn.” I asked him if there was anything similar to Golden Dawn
in Spain and he said that there wasn’t, but that there are some members
of the Spanish delegation to the European parliament who now openly say
that Spain was better under Franco.
But what do the Spanish really want; more or less democracy? In the
end would the Spanish favor a group like Los Indignados or the Greek
Golden dawn party? “That is the question. We asked for more democracy. I
know what happened to Occupy Wall Street. How the US government got rid
of them. Here in Spain we had some meetings with the police, the police
union. These cops told us that we had to be careful because the
government has spies in our organization. In the end what we really want
is a democracy that is protected from economic power.”
But are people in Spain beginning to wonder if they even need a
government considering the lack of success Prime Minister Rajoy has had
in reducing either unemployment or the deficit? “Well, during the Civil
War there were over a million anarchists, a really a huge number. We
have a tradition of that here. We had Franco, but we also had
anarchists. If you ask me, though, it's better to have a state, and a
government.”
As for Los Indignados, he thinks that they have to evolve from being
protestors to citizens. They have to ask themselves just what kind of
society they want. In his opinion, most people would say that they want
equality, justice and an end to corruption. Unfortunately, he admitted,
while a lot of people want change, they don't want to get involved
because they are afraid of another coup d'etat. “Spain has had a history
of this.”
To get a better idea of how the crisis was affecting the average
Spaniard and indeed how it was moving up the economic ladder I spoke to
film director Alejandro Toledo. Toledo has had a very successful career
directing TV commercials for corporate clients and I asked him about the
advertisement he filmed for Caritas, the Catholic Church's main
charitable organization. It is a very powerful clip that shows a young
man in his thirties walking through the streets of Madrid with a little
girl who isn't more than five or six. The two of them are homeless and
the man is tired and worried, not so much about anything that might
happen to himself, but because of his daughter. He doesn't have any
money and she doesn't understand why they can't go home, and she wants
something to eat. The first thing you notice about him is how normal he
seems. He is not at all what you would think of when you think of a
homeless person. His trousers and his jacket are neat and clean and his
hair is cut, and even the suitcase that he's pulling along gives him
more the look of a tourist than a man who has just lost his job. This is
a story about the new poor in Spain, about the middle class that is
finding it harder and harder to get by in the big cities and that is
increasingly turning to organizations like Caritas for help.
It is a very moving and realistic commercial and I asked Toledo how
he came up with the idea. What inspired him to do an advertisement for
Caritas? “It's based on a true story” he said. “One day I was walking
along a street in Madrid and I saw this guy who I hadn't seen in ten
years; a film producer like me, walking into a Caritas food dispensary
with two of his kids. I was so surprised to see him that I stood there
and the next thing you know the three of them were walking out again
carrying bags of food. Of course, I understood immediately that he was
taking that food because he needed it for himself and his kids and it
hit me that this man was a professional and that if it could happen to
him, if he could lose his job, then it could happen to anyone, myself
included. And it was then that I knew that I had to contribute in some
way. I couldn't just stand by saying nothing.”
When I asked if the Spanish resented the immigrants who were still
there and receiving unemployment benefits he said that none of these
people are stealing from the system, that everyone is just getting what
they paid for. He was categorical in his support for them. “This is a
crisis that is affecting our own but also all these immigrants. We have
millions of them here who came to work in the construction industry
during the boom period. They have put down roots in Spain, with kids
too, and they are covered by the system. So, what I noticed when I was
making my movie was that the crisis was relative. Most of the people are
covered by social security and health care is free. Of the five million
that we have here who are unemployed, three million are covered by
social security. It is the other two million who we really need to think
about.”
All of this is manageable, he said, so long as the government
continues to pay for benefits like unemployment and health care. The
money is there, it's just a question of how the Spanish decide to use
it. Caritas does a lot to help those who don't have any kind of
coverage, but even more important is the traditional role of the Latin
family in taking care of its own. “In a Latin country, you have to ask
yourself with 5 million people unemployed why aren't these people on the
streets, why isn't there already a revolution? It's because of the
communities that exist, with the family doing their part, this is what
Latin is, this is the Latin mentality. If you go to the USA you don't
see many Latin people who are homeless in the streets. In Miami for
example you don't see Latin homeless.” He did have a point about Spain.
Many people who I spoke to while in Madrid told me that if it wasn't for
their families it would be much more difficult to survive in the
crisis.
So the safety net in Spain was not just the government. Individuals
and families still counted. Recently a couple in the Basque Country,
Jose and Isabel (their last names were not given) posted an insert in a
local newspaper offering their vacation home for up to a year to any
family in economic difficulty, free of charge. The turning point for
them was the suicide (one of many due to eviction) of a woman who was
about to be removed along with her family from a house not too far from
where Jose and Isabel live. In one interview, Jose said that at this
rate “Spain will become a country of houses without people and people
without homes”. He said that they were not millionaires. That life,
however, had been good to them but that they were no better than anyone
else. Something had to be done and this is what they decided to do.
Their example has inspired many. The city governments of both Madrid and
Barcelona, for instance, have now decided to allocate some of the
houses that they have to people who have been evicted from their homes.
Perhaps all of this could be seen as a new trend and evidence that
people are waking up to the fact that strong measures, and not just more
austerity, need to be taken with the crisis and the pain that it has
generated.
Some, such as UGT union leader Cándido Méndez, whom I interviewed the
day of their general strike in November, understand that it is going to
take a long time, perhaps ten to twenty years, to rebuild Spain's
economy after the collapse of the housing industry. Culture, the Spanish
language, and agriculture are some of the strong points that he sees in
Spain's economic future, but this is going to require a lot of
investment, he told me.
Others, such as the 70 year old Enrique de Castro, are not waiting
for the money and are taking matters into their own hands. De Castro was
certainly one of the more interesting people I met while in Spain. A
Catholic priest, although he doesn't like the word “priest.” “Jesus,' he
says, 'abolished the priesthood like he abolished the temple, like he
abolished the intermediaries between man and god. In the Bible this is
very clear, even if they try to hide it.”
De Castro has been serving the parish of Vallecas, a suburb about 10
miles outside of Madrid, for 31 years. During the transition period to
democracy in Spain he denounced the torture that was still being carried
out by the police, even during the socialist González government. He
has always taken the side of the weakest in society and he and the other
priests in his parish came out in favor of the laws legalizing divorce
and gay marriage and this obviously created a lot of tension with his
superiors. “We were talking to journalists in the newspapers and on TV
and telling them, for instance, what we knew about the world of drug
dealing (his parish is in a section of greater Madrid which has always
been a problem area for drugs). Namely that there were economic
interests, even political interests, in putting to sleep, so to speak, a
whole generation of potentially rebellious youth.”
“What we supported and what we were against contrasted stridently
with the image of other priests and especially with the church
hierarchy, but our job was to take care of those who couldn't take care
of themselves. Finally I remember that an auxiliary bishop from Madrid
came to see me and asked me to sign a document that was written by
Ratzinger himself. He was already Pope, even if this particular document
was from his days as a Cardinal in the Santo Ufficio. The bishop asked
me to read and to sign that document if I wanted to be in communion with
him and with the cardinal. But I realized that if I signed it I
wouldn't be in communion with my people, because basically it was saying
that homosexuality was against nature, that they were depraved, etc.”
And so he didn't sign it.
I asked him what he thought about the austerity program of the Rajoy
government and he said it was affecting in a negative way everyone. He
has personally worked with many Moroccan teenagers, even taking some
into his own home. The cutbacks meant that all of these boys could no
longer receive medical treatment because they didn't have proper visas.
He knew of a few who had been receiving treatment for cancer or AIDS and
they had had to give up their treatment.
I asked him what he thought would happen to Spain and he said that in
his opinion things would get worse. The government would continue with
its austerity measures and the labor unions would hold their one day
strikes that affected no one. “I am convinced that the only solution to
our problems is living in small groups and doing the best we can within
these groups. In our parish we have created this kind of community, one
of mutual aid and respect for others. The only revolution that we need
to start is the one based on caring, on feelings, and generosity. It is
the only revolution possible, because if you seize power you become that
power and there is no difference between you and it. This was the
tragedy of the countries of Eastern Europe, they made a revolution with
the people and they then governed without them.”
Spain, I knew, would be different. It would survive the crisis
because of its people. “True faith,” De Castro told me as I said
good-bye, “is believing in others.” The strength of the Spanish had
always come from the small communities, from people taking care of each
other and believing in their essential dignity as human beings, and it
would be no different in 2012. In a time of crisis, everyone is given
the chance to discover what is essential in life.