Following the euphoria of a party swept into a power on a raft of promises which may prove to be less feasible in their implementation than in their oratory, Greece is waking up to what the nitty-gritty of policies will actually be, and there is one area of policy on which a weather eye will be kept by many in Mallorca and other regions of Spain that are competitor tourist destinations.
Syriza's Alexis Tsipras has met with businesspeople to outline what the party's tourism policy is likely to entail, and there are some headlining elements which will resonate here, in particular those to do with all-inclusive hotels and airlines. On the latter, Syriza will look at the possibility of creating a national airline, by which one assumes that it would be a government-owned airline, and at stopping the privatisation of airports on the Greek islands. With protests against the AENA partial privatisation occurring in the Balearics, there will be interest in seeing if and how Syriza halts the privatisation process in Greece.
It is what Tsipras has had to say about all-inclusives which will probably attract greater attention. Syriza has said that it won't ban AI projects that already exist but that it would look to reduce the number of AI packages and prevent any further developments which are to offer AI in a country where an eighth of tourism revenue is derived from AI. Tsipras's observation that all-inclusive resorts exist "at the margin of local economies" will, for many in Mallorca, be indisputable. "Tourism is an issue for local communities which live and breathe it." Amen.
But AI or not AI, the Syriza line appears to be one that will block or inhibit new resort development (on a grand scale) of any type. Investors, if they haven't already, will be packing their bags and heading off in search of more amenable political regimes. And it is this, investment, which is a fault line in Syriza's policy. Were it to dry up in supporting a major industry such as tourism, then righting the Greek economy might remain a pipe-dream.
It has been suggested that the current flurry of hotel investment activity and licence applications in Mallorca has been inspired in part by fears of what a Podemos-influenced if not Podemos-led regional government might mean. Comparisons between Podemos and Syriza aren't as straightforward as some might think, as I have noted, but one would have to believe that there would be some similarity in thinking when it comes to tourism. Investment in Mallorca might, despite getting permissions in place, be affected were Podemos to become a major political influence after May.
Comparisons between Greece and Mallorca and indeed Greece and Spain in terms of tourism are also not straightforward. The Greek market is very much smaller than Spain's; the total number of tourists to Greece in 2014 amounted to roughly twice the number that Mallorca alone attracted. Given the substantially lower volume, it is just conceivable that policy changes wouldn't harm the country's tourism to the extent that numbers would fall, except that these would be policy changes that would also have an impact on tour operators, and it has been the case that, in certain parts of the globe, government attempts to outlaw or reduce AI have had to be re-thought because of tour operator influence and threats.
A further difference lies with the political organisation of Greece and Spain. Greece is a unitary state, meaning that the administrative regions of Greece do not have the devolved and autonomous powers that the regions of Spain do. These powers include tourism policies, so the Balearics (or any other region) could, in theory, ban AI, though such a ban would probably end up at the Supreme Court as it might be argued that it exceeded these powers and contravened regions' statutes of autonomy. It is these very statutes, however, that could be invoked in reverse were, hypothetically, the state to decree that there would be a halt to all new large-scale tourism development and also to AI. Much though it is argued that the regions enjoy too much power, the statutes of autonomy do act as a means of preventing abuses by central government; they could only be altered by a re-writing of the constitution.
I accept that this is all speculative, but while I find it inconceivable at present to think that Podemos might become the dominant influence in both national and regional (Balearics) government, it would be foolish to dismiss the possibility. And were such a possibility to be realised, then, assuming there were tourism policies similar to those that Syriza plans, the scale of AI might well be reduced. Which might sound like good news, but then one would have to ask about future investment: a question that the Greeks will now have to ask.
Showing posts with label Syriza. Show all posts
Showing posts with label Syriza. Show all posts
Wednesday, January 28, 2015
Tuesday, January 27, 2015
Podemos And The Syriza Effect
When Pablo Iglesias, the leader of Podemos, was photographed in triumphant pose with Alexis Tspiras in Athens last week, I wondered if he might regret it. Following Syriza's astonishing electoral performance, it is possible to view those photos in alternative ways. Does Iglesias's association with and support for a supposedly hard-left party put the frighteners up Spanish voters or does it embolden these voters?
There are similarities but there are differences between Syriza and Podemos. One difference lies with the nature of the two entities. Syriza has a longer history, one that can be traced back to the start of the century but which really only became formalised at the time of the 2004 elections in Greece. A coalition of the left, it has gone through processes by which it has become a definable political party that has lost some of its more extreme propositions along the way but which remains very much to the left. Podemos, on the other hand, is very much newer, a case of almost spontaneous political combustion that is still not clearly definable as a party in the sense that its policies and make-up are fluid because of the way in which democratic participation helps to define and mould them. Ostensibly, it is of the left and operates within the parameters of left-wing politics, but watering-down can occur and has occurred, as with adopting a less dogmatic view on nationalisation. And because the Podemos philosophy is one of disassociation from the established party system, it sees itself not in terms of the clash between left and right but as aspiring towards centrality (to paraphrase what Iglesias has said).
Syriza's win can be attributed to three key elements - the austerity driven by the troika and the consequent "humiliation" of Greece, corruption and a desire to overthrow the elite, be it political or business, and to establish greater meritocracy. Spain, while its pride has taken a considerable knock, has not been subjected to the humiliation of Greece - there was no sovereign bailout after all, just one for the banking system - and the effects of austerity have not been as severe as in Greece (though they have been severe enough). Consequently, the Germans and the EU are not the hated figures in Spain to the same degree as they are in Greece. For Podemos, the enemy lies more within than without, which is where there are very strong similarities with Syriza. Corruption, elitism, the systems of amiguismo, of favouritism, of nepotism that inhibit meritocracy; for Greece, read also Spain.
With Europe not the same prime target for the ire of the Spanish people, does this lessen the likelihood of Podemos reproducing an electoral performance similar to that of Syriza? It may do, but the Greek election could also act as a springboard for even greater support for Podemos. There are differences in circumstances but only some. What Syriza has proved is that an electorate can overthrow the established system and it has done so by tapping into what contemporary society offers - the social networking of a different way of thinking and of experimentation: the post-capitalist society, if you like.
At the same time as Syriza was turning Greek politics upside down, Spain's Partido Popular was gathering in Madrid for a national convention. The pomposity of such conventions seems cringeworthy in this new society, as are the banalities of statements surrounding corruption. Rajoy was speaking only hours after Bárcenas announced that Rajoy has always known about the B accounts. Away from Madrid, PSOE's Susana Díaz in Andalusia was calling a snap election, having broken the pact of regional government with the Esquerra Unida. There's more to it than that: power politics and a possible challenge to Pedro Sánchez.
The public, in the climate of the rise of Podemos and of Syriza's victory, will look upon these events with contempt and with the knowledge that they confirm the essential proposition of Podemos, that now is the time to change these games and political charades. The main parties are being exposed as antediluvian, and commentators who persist in believing that the status quo will naturally be restored are failing to grasp the significance of what is occurring: that styling politics in Spain according to the two-party system of left and right is becoming outmoded and that is being superseded by new ways of thinking largely inspired by a younger generation hooked on social networking democracy and on technology. It should, incidentally, not be overlooked that Syriza, Podemos and also the forgotten alternative in Spain, Partido X, are all heavily in favour of investment in innovation and development.
Nevertheless, for Podemos, perhaps its greatest worry is what lies ahead over the next few months. The what's-next question has yet to be answered in Greece. The answer might just alarm Spanish voters. Or it might not.
There are similarities but there are differences between Syriza and Podemos. One difference lies with the nature of the two entities. Syriza has a longer history, one that can be traced back to the start of the century but which really only became formalised at the time of the 2004 elections in Greece. A coalition of the left, it has gone through processes by which it has become a definable political party that has lost some of its more extreme propositions along the way but which remains very much to the left. Podemos, on the other hand, is very much newer, a case of almost spontaneous political combustion that is still not clearly definable as a party in the sense that its policies and make-up are fluid because of the way in which democratic participation helps to define and mould them. Ostensibly, it is of the left and operates within the parameters of left-wing politics, but watering-down can occur and has occurred, as with adopting a less dogmatic view on nationalisation. And because the Podemos philosophy is one of disassociation from the established party system, it sees itself not in terms of the clash between left and right but as aspiring towards centrality (to paraphrase what Iglesias has said).
Syriza's win can be attributed to three key elements - the austerity driven by the troika and the consequent "humiliation" of Greece, corruption and a desire to overthrow the elite, be it political or business, and to establish greater meritocracy. Spain, while its pride has taken a considerable knock, has not been subjected to the humiliation of Greece - there was no sovereign bailout after all, just one for the banking system - and the effects of austerity have not been as severe as in Greece (though they have been severe enough). Consequently, the Germans and the EU are not the hated figures in Spain to the same degree as they are in Greece. For Podemos, the enemy lies more within than without, which is where there are very strong similarities with Syriza. Corruption, elitism, the systems of amiguismo, of favouritism, of nepotism that inhibit meritocracy; for Greece, read also Spain.
With Europe not the same prime target for the ire of the Spanish people, does this lessen the likelihood of Podemos reproducing an electoral performance similar to that of Syriza? It may do, but the Greek election could also act as a springboard for even greater support for Podemos. There are differences in circumstances but only some. What Syriza has proved is that an electorate can overthrow the established system and it has done so by tapping into what contemporary society offers - the social networking of a different way of thinking and of experimentation: the post-capitalist society, if you like.
At the same time as Syriza was turning Greek politics upside down, Spain's Partido Popular was gathering in Madrid for a national convention. The pomposity of such conventions seems cringeworthy in this new society, as are the banalities of statements surrounding corruption. Rajoy was speaking only hours after Bárcenas announced that Rajoy has always known about the B accounts. Away from Madrid, PSOE's Susana Díaz in Andalusia was calling a snap election, having broken the pact of regional government with the Esquerra Unida. There's more to it than that: power politics and a possible challenge to Pedro Sánchez.
The public, in the climate of the rise of Podemos and of Syriza's victory, will look upon these events with contempt and with the knowledge that they confirm the essential proposition of Podemos, that now is the time to change these games and political charades. The main parties are being exposed as antediluvian, and commentators who persist in believing that the status quo will naturally be restored are failing to grasp the significance of what is occurring: that styling politics in Spain according to the two-party system of left and right is becoming outmoded and that is being superseded by new ways of thinking largely inspired by a younger generation hooked on social networking democracy and on technology. It should, incidentally, not be overlooked that Syriza, Podemos and also the forgotten alternative in Spain, Partido X, are all heavily in favour of investment in innovation and development.
Nevertheless, for Podemos, perhaps its greatest worry is what lies ahead over the next few months. The what's-next question has yet to be answered in Greece. The answer might just alarm Spanish voters. Or it might not.
Subscribe to:
Posts (Atom)
