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Eurofusion
by Paul Gibson

Home >> Eurofusion

Posted by Paul Gibson
What makes a Spanish dinner special? Wine from La Rioja, or a good Valdepeñas. How about a good Xerez as an appetizer? Do I hear “Marisco� or Gulas del Norte? Gazpacho, now there's a great refreshing entree. Paella from Valencia, squid or octopus from Galitia, and let's not forget a good Madrid Stew (cocido). So how is the hotel, restaurant business fairing with all of the controversy over autonomies these days?

Recently, there have been some major events that have put intra-autonomy trade in danger. Cordoniu champagne kicked off the game with major losses in revenue. Xerez is still struggling for popularity among many Spanish autonomies, and well, La Rioja… la Rioja is an exception to the rule.

Fishermen in Getaria and San Sebastian have suffered the loss of all types of fish such as prawns and sardines, largely due to illegal fishing practices on the part of the French that have literally killed off schools of endangered species.

All of this together with higher costs of transport due to increasing oil prices is making the job of restaurants and hotels a lot more difficult these days. So how do these businesses cope with pressures at home? Many of them look elsewhere to buy their merchandise, delicacies and the like. Beer is no longer San Miguel and Cruz Campo, but Arium and other generic beer from Eastern Block countries.

While hotels and restaurants alike fend for themselves, the rest of us are witnesses to a tendency in Spanish autonomic business. When businesses encounter the negative effects of business at home, they look to Europe for representation, not to Madrid.

The growth of autonomic policies relating to Europe has increased substantially in recent years. The explosion seems to have come to a head with the recent loss of irreplaceable natural resources in Galitia. The price of olive oil is skyrocketing at its highest rates in years due to a lack of water for irrigation and well, no one is doing anything about it.

While businesses struggle, in search of the ability to compete with other nations, we look to Europe to solve our problems here at home. But now we have another unforseen problem – with the recent frictions between EON and Gas Natural, we have once again put our foot in our mouth. The question remains, is Spain going to take care of their domestic trade issues here at home, or will we continue to look to Europe to regulate business activity, trade cuotas, etc.

The costs of cohesion have some clear winners, but certainly not Spain. If European subsidies for Spanish farmers with destroyed crops is considered a major victory, look out – they are slowly being erased. While the rest of Europe enjoys prosperity, higher wages and more competitivity, Spain has fallen drastically in every aspect. We pay more, work longer hours, earn less money, and when a business comes from the outside to lend a hand, we show them the door. A complete mystery to me.

This letter is stored with the following tags: food_industry  spanish_autonomy  europe 
4 comments for Eurofusion

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Paulg
Re: Eurofusion by Paul

I couldn’t help sharing a quick anecdote from one of my students who told me a great example of what we are talking about: The M-30 in Madrid
I wonder how many more “European” studies are being presented nowadays for Spanish projects here at home.

Donalgreece2
Re: Eurofusion by Domnall

A thought provoking article!
As European ‘nation-states’ slowly disappear, what will the relationship be between what will become federal governments and the centre of the European Union?
We have little experience of federalism in Europe. Austria has it’s nine Bundesländers, Russia has it’s forty-eight ‘oblasts’ etc but most of us are in the dark. It would be interesting to hear how a north American views the prospect of European federalism. It seems to work in the US. Can it work here?

Paulg
Re: Eurofusion by Paul

The spirit of federalism is alive and well in certain areas of the world, Donal. However, here in Europe there seem to be two contradictory visions: federalism on the one hand, and separitism/independence on the other. From a purely business point of view, there is a strong handicap here in Europe: a lack of political unity among member states which leads to a more viable economic stability. Business relationships can only flourish if there is a strong, clear and above all, unified code of law to follow. Europe seems to have made an initial attempt at “federalism” with the creation of the Common Market in the Treaty of Rome, but then has come up short on the legal side.
The Common Law is certainly an admirable attempt at creating this unique and exclusive legal framework, but since it lacks any authority or legal precedence to enforce the laws of each member country, it is entirely worthless from a practical (business) point of view.
The major difference between American federalism and European “federalism” is that American federalism had a distinct advantage: there was no government in place (after they kicked out King George III), and so they could establish a system of checks and balances. It responded to the “will of the people”. In Europe, there are already several central governments created and to go back now could be not only not viable, but also unfair to specific member countries that have developed their own legal, monetary and civic systems ( not to mention their own trading partners, etc.) It would appear that leaders have tried to turn an economic trade agreement among different “states” here in Europe, and tried to turn it into a political block to compete against other world powers, and while that may work on an economic level, there are other socio-political issues that are left “out in the cold.” I think the best way to understand how federalism “should” work is in the writings of the Federalist Papers (Alexander Hamilton, James Madison, John Jay).

Paulg
Re: Eurofusion by Paul

I think regions like La Rioja, Xerez, and Valencia already have their own trade agreements with any countries they feel like without the knowledge of European authorities. Does anyone agree with me?

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Posted on http://www.weeklyletter.com at 2006-08-29 10:25:00 +0200

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