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### Viewing cable 04MADRID961, WHO ARE THE SPANISH SOCIALISTS?

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
04MADRID961 | 2004-03-18 18:06 | 2010-12-07 12:12 | CONFIDENTIAL | Embassy Madrid

`

    This record is a partial extract of the original cable. The full text of the original cable is not available.

` `

    C O N F I D E N T I A L SECTION 01 OF 02 MADRID 000961

    SIPDIS

    DEPARTMENT FOR EUR/WE
    NSC FOR FRIED AND VOLKER

    E.O. 12958: DECL: 03/18/2014
    TAGS: PREL PGOV SP PSOE
    SUBJECT: WHO ARE THE SPANISH SOCIALISTS?

    REF: A. MADRID 881

    ¶B. MADRID 919
    ¶C. MADRID 812

    Classified By: Acting Deputy Chief of Mission Carol J. Urban,
    reasons 1.4(B) and (D).

    ¶1. (C) Summary: The Socialist Workers Party of Spain
    (PSOE), surprise victor in March 14 elections, is a
    center-left party in the European social democrat tradition.
    Since the end of the Franco regime and the beginning of
    Spain's modern democracy in 1977, PSOE has generally
    advocated comprehensive social programs and limited defense
    spending, as well as a reduced domestic role for the armed
    forces. In practical terms, members of Zapatero's inner
    circle have been careful to say PSOE will make no significant
    changes to the Aznar government's successful economic
    policies. We expect static or reduced defense spending under
    PSOE, increased social welfare programs, more "green"
    environment policies, a greater focus on Spain's role in the
    EU (including increased adherence to French and German
    leadership), and distancing from the Spain's close
    relationship with the United States that Aznar fostered. End
    summary.

    ---------------------
    Mainstream Socialists
    ---------------------

    ¶2. (SBU) Founded more than 120 years ago, the PSOE espouses
    as its main goals liberty, equality, solidarity and social
    justice. Communists broke with the Socialists after the 1917
    Russian revolution and formed their own party (now the United
    Left, or IU). PSOE renounced any connection with Marxism in
    1979, reaffirming the democratic and federal nature of the
    party. Since the end of the Franco regime and the beginning
    of modern Spanish democracy in 1977, PSOE has advocated
    comprehensive social programs, limited defense spending and a
    reduced role for the military in Spanish life.

    ¶3. (SBU) The Socialists governed Spain with Felipe Gonzalez
    as President from 1982-1996. Though the Socialists lost power
    in 1996 amidst a swirl of corruption scandals, Gonzalez is
    credited with having strengthened the foundations of Spanish
    democracy and governmental institutions during his time as
    head of government. Spain joined the European Community and,
    in a national referendum, reaffirmed its membership in NATO
    under Gonzalez, a position PSOE had originally opposed.
    Gonzalez called the latter a "triumph of the people of
    Spain." The Socialist government under Gonzalez also updated
    Spain's agreement with the United States for American use of
    Spanish military bases.

    ---------------
    Zapatero's PSOE
    ---------------

    ¶4. (C) President-elect Jose Luis Rodriguez Zapatero took
    over as PSOE's secretary general in 2000, narrowly edging out
    party "baron" Jose Bono. In 2003 the party issued a
    resolution outlining its political program designed "to
    increase freedom and the decision-making power of ordinary
    citizens over their own lives; to reduce crime; to allow
    citizens to develop their talents and abilities to the
    fullest; and to ensure individuals are not abandoned to their
    own fate." Following is a summary of PSOE positions in major
    issue areas:

    -- Foreign Policy: See Ref A for a discussion of PSOE's
    likely foreign policy goals. PSOE's general foreign policy
    outlook was summarized well by Manuel Marin, the party's
    international affairs spokesman in Congress: "Aznar wanted
    to make Spain a great nation among the great nations, but
    Spain lacks the means and capacity for that role. Spain
    cannot be a determinative force in great international
    conflicts. We do not have the political or economic weight
    for that, nor the internal security and defense capabilities
    that would be necessary." In general, we expect PSOE to
    conduct more of its foreign policy via Brussels and to hew
    closer to Franco-German positions. Zapatero's comments have
    also indicated he plans to distance Spain from the close
    relations the U.S. enjoyed under the Aznar government.

    -- Economy: The outlines of PSOE's economic platform are in
    Ref C. Close associates of Zapatero have been careful to say
    that the incoming PSOE government will not make significant
    changes to the PP's successful economic policies. Some
    business leaders have voiced the same expectations with us.
    PSOE will work to decrease unemployment (currently over 11
    percent and one of the highest in the EU) and convert jobs on
    temporary contracts (currently one-third of new jobs created)
    into permanent positions which carry full benefits.
    President-elect Zapatero has stated his government will focus
    significant attention on calming the rapid rise in housing
    prices and has already announced the creation of a Ministry
    of Housing. The PSOE also advocates more investment in R&D
    and training for workers. They have promised to simplify the
    tax system, resulting in decreased taxes for many Spaniards,
    while maintaining a balanced budget and fiscal discipline.

    -- Social Programs and Issues: PSOE has pledged to: include
    more health services in the nation's health plan and reduce
    the maximum wait time for operations; increase pensions and
    improve health care for the aged; raise the minimum wage;
    lengthen legally mandated paternity leave; change the civil
    code to allow gay marriages; mandate gender-based affirmative
    action for government jobs; and devote more attention to the
    problem of domestic violence.

    -- Education: Zapatero has said PSOE will lengthen the
    school day, increase bilingual education (one-third of
    classes will be taught in English), improve computer access,
    and increase grants for students who go on to higher
    education.

    -- Environment: We can anticipate more "green" environment
    policies. PSOE officials have made clear they plan to scrap
    the PP's hugely controversial north-south water transfer
    plan, replacing it with a new water policy to be based on
    better water management, increased reliance on underground
    water supplies and greater investment in desalination. PSOE
    has pledged Spain's complete compliance with the Kyoto
    Protocol, despite rumblings from Spanish industry that
    emissions cuts agreed under the EU umbrella will severely and
    negatively affect competitiveness. PSOE's campaign platform
    called for a formal moratorium on nuclear power within five
    years, but recent pronouncements have indicated that the
    party might simply deny renewal of current licenses.

    ¶5. (C) Zapatero has not explained how he plans to pay for
    increased social programs while cutting taxes at the same
    time, except to suggest he may trim defense spending to pay
    part of the bill. His inner circle have suggested some
    revenues may come through greater government efficiencies,
    without specifying programs or jobs that would be eliminated.

    -------
    Comment
    -------

    ¶6. (C) PSOE is a mainstream European socialist party.
    Although Zapatero has led PSOE for four years, he has never
    held a government position, and since PSOE has been out of
    power for eight years, neither have many of those around him
    (see Ref B for a discussion those surrounding Zapatero).
    PSOE and Zapatero will have a steep learning curve to climb
    upon taking power. Given the need to appeal to his large
    anti-war constituency, Zapatero will distance Spanish foreign
    policy from Aznar's close relations with the U.S.
    Nonetheless, we are hopeful that once PSOE grasps that it has
    won and Zapatero is in office, Zapatero will come to realize
    that while he may have differences with the U.S., it is still
    in Spain's interest to cooperate with us on a number of
    issues.

    ARGYROS

`