VZCZCXRO9389
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHMD #0266 0722317
ZNR UUUUU ZZH
R 132317Z MAR 09
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 0372
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHLA/AMCONSUL BARCELONA 3897
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS MADRID 000266 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/WE, EEB/IFD/OMA 
TREASURY FOR OIA/OEE/T.O'KEEFFE,D.WRIGHT 
COMMERCE FOR 4212/DON CALVERT 
ENERGY FOR EERE:D.BIRNS,J.TENG, PIA:K.BALLOU,D.COLOMBO 
 
E.O. 12958: N/A 
TAGS: EAIR ECON EFIN EIND ENRG EPET SP
SUBJECT: MADRID ECONOMIC WEEKLY, MARCH 9-14 
 
REF: MADRID 245 
 
Contents: 
 
EFIN: Spain Invited to Join Financial Stability Forum 
ECON: Consumer Prices Unchanged in February 
EAIR: Domestic Air Travel Down 23% 
ENRG: Electricity Demand Down, Wind/Hydroelectric Production 
Up 
EPET/EINV: Repsol to Reduce Investment Abroad 
 
 
Spain Invited to Join Financial Stability Forum 
 
1.(SBU) Spain, along with emerging market G-20 countries and 
the European Commission, was invited to become a member of 
the Financial Stability Forum (FSF) on March 12.  The FSF, a 
financial market supervision advising body made up of finance 
ministers and central bank officials, was tasked at the 
November G-20 summit with following up on recommendations for 
financial sector reform.  Comment: This makes the GOS more of 
a full player in efforts to address the international 
financial crisis.  The GOS is likely to continue seeking full 
G-20 membership. (All Media, 3/13) 
 
Consumer Prices Unchanged in February 
 
2.(U) After declining for three consecutive months, consumer 
prices apparently did not change during the month of 
February, according to the National Statistics Institute. 
February consumer prices were only 0.7 percent above their 
February 2008 rate, representing one of the lowest annual 
inflation rates since the index was begun in 1976.  Comment: 
The declines of the previous three months appear to have been 
partly the result of lower oil prices but also partly the 
result of reduced consumption.  This had raised concerns 
about the possibility of deflation as the economic slump 
continues, but February results may reduce those concerns 
somewhat. (National Statistics Institute, 3/12) 
 
Domestic Air Travel Down 23% 
 
3.(U) In another sign of the economic slump, January 
passenger traffic on domestic flights was 23% below the 
January 2008 level.  Not all of the decline was caused by the 
economic crisis, however; the number of passengers taking the 
Madrid-to-Barcelona air shuttle has fallen significantly 
since high-speed train service between the two cities began 
last March. (El Pais, 3/9) 
 
Electricity Demand Down, Wind/Hydroelectric Production Up 
 
4.(U) Largely because of a sharp decline in industrial 
demand, total electricity consumption is down almost 7% from 
the start of the year to March 13 compared to the same period 
in 2008.  At the same time, increased rains have more than 
doubled hydroelectric production from its level during the 
2008 drought, and strong winds and continued capacity 
increases have boosted wind electricity production by over 
25%.  With less total demand and more wind and hydro 
generation, gas, coal, and nuclear generation have each 
declined significantly.  At least for this period, wind and 
hydro generation have combined for over 25% of the country's 
total generation, approaching an EU goal of 29% by 2010.  The 
reduced use of gas and coal is likely to result in lower 
Spanish CO2 emissions as well.  (El Pais, 3/9; Red Electrica 
de Espana) 
 
Repsol to Reduce Investment Abroad 
 
5.(U) Repsol President Antonio Brufau told a Barcelona 
conference audience on March 11 that the oil and gas company 
would likely reduce its planned investment for 2008-2012 by 4 
billion euros to 28 billion euros.  The decision to reduce 
investments is attributed to the fall in petroleum prices as 
well as the worsening global economic situation.  (El Pais, 
3/12) 
CHACON