VZCZCXRO8359
RR RUEHLA
DE RUEHMD #1040/01 2961410
ZNR UUUUU ZZH
R 231410Z OCT 09
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 1370
INFO RUEHLA/AMCONSUL BARCELONA 4168
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 MADRID 001040 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EUR/WE, EEB/IFD/OMA 
COMMERCE FOR 4212/DON CALVERT 
TREASURY FOR OAI/OEE R.JOHNSTON 
ENERGY FOR PIA:K.BALLOU 
 
E.O. 12958: N/A 
TAGS: BEXP ECON EIND EINV ELAB SP
SUBJECT: MADRID ECONOMIC WEEKLY, OCTOBER 19-23 
 
REF: MADRID 1015 
 
Contents: 
 
EINV/BEXP: Zapatero Addresses US Business Interests in ABC 
Speech 
ECON: Opposition Parties Criticize 2010 Budget Bill 
ELAB: Q3 Unemployment Rate Flat at Just Under 18% 
ECON: Foreign Tourist Arrivals Down Almost 10% 
EIND/ELAB: Opel Unions Reach Preliminary Agreement with 
Magna; Fewer Job Cuts Anticipated 
 
 
Zapatero Addresses US Business Interests in ABC Speech 
 
1.(U) Speaking to CEOs of U.S. companies belonging to the 
American Business Council (ABC), President Zapatero on the 
evening of October 21 addressed issues of concern to U.S. 
firms.  He said the GOS was ready to start the process of 
renegotiating the 1990 bilateral double taxation treaty.  He 
also acknowledged that Spain,s IPR protection regime needed 
improvement, saying that this was an issue of concern to both 
governments.  He welcomed (currently stalled) efforts by ISPs 
and content providers to find a solution that respected 
property rights while encouraging development of the 
information society.  He emphasized that the interministerial 
commission recently established by the Council of Ministers 
would present before the end of the year "a satisfactory 
proposal" for action.  Zapatero also said that the GOS and 
the Obama Administration had agreed to study the creation of 
a bilateral forum on investment and economic cooperation that 
would include representatives of the two governments, the 
main U.S. investors in Spain, and the main Spanish investors 
in the U.S.  He said the forum would address areas including 
renewable energy, energy efficiency, public transportation, 
information/communication technology, aviation, 
biotechnology, and health.  Zapatero cast each of these 
efforts in the context of a GOS push to encourage U.S. 
investment in Spain and Spanish investment in the U.S. 
 
2.(SBU) Comment: The event was clearly a result of the GOS' 
pleasure with Zapatero's Oval Office meeting last week.  The 
Presidency told the ABC at the end of last week that Zapatero 
would speak at its previously planned event, and it brought 
along several ministers and Secretaries of State and an 
impressive media contingent.  GOS officials told us how 
pleased they were with the Washington visit, and they are 
working actively on proposals for the bilateral investment 
forum.  At a reception afterwards, Zapatero stayed far longer 
than the planned 10 minutes discussing business issues, and 
ministers and Presidency officials emphasized their interest 
in addressing USG and business concerns on investment-related 
issues.  (Embassy, 10/22) 
 
Opposition Parties Criticize 2010 Budget Bill 
 
3.(U) Conservative and leftist opposition parties alike 
criticized the Socialist government in the Congress of 
Deputies on October 20, the first day of debate on the 
Zapatero Administration,s proposed 2010 budget. Opposition 
leader Mariano Rajoy of the conservative Popular Party called 
the proposal "a piece of junk" that "masks reality, abuses 
the economy and endangers everyone."  He said lambasted the 
bill as "deadly for the middle class and workers."  The 
Catalan Republican Left (ERC) likewise attacked the bill for 
not doing enough to fight unemployment.  Media reports 
suggest that Socialists, minority government is counting on 
the support of the Basque Nationalist Party (PNV) and the 
Canary Islands Coalition to pass the bill.  Despite the 
political theater, the budget bill did receive the number of 
votes needed to proceed to the next stage of consideration, 
and it is expected to be approved before the end of the year. 
 (All Media, 10/21) 
 
Q3 Unemployment Rate Flat at Just Under 18% 
 
4.(U) The National Statistics Institute announced that the 
unemployment rate rose by 0.01% to 17.93% in the year's third 
quarter.  This is the highest rate since 1998.  The number of 
people with jobs actually fell by 75,000, and the 
unemployment rate was only flat because the number of 
unemployed people looking for work declined as well. 
Comment: The rate is expected to rise in the year's fourth 
quarter.  (National Statistics Institute, 10/23) 
 
MADRID 00001040  002 OF 002 
 
 
 
Foreign Tourist Arrivals Down Almost 10% 
 
5.(U) The number of foreign tourist arrivals between January 
and September was 9.8% below the number who arrived in 
January-September 2008.  There were fewer arrivals than in 
the same period of any year since 2004.  (El Pais, 10/21) 
 
Opel Unions Reach Preliminary Agreement with Magna; Fewer Job 
Cuts Anticipated 
 
6.(U) Opel union representatives at Spain,s Figueruelas 
plant have reached a preliminary agreement with Magna 
leaders, a necessary condition for GM's sale to Magna of a 
controlling stake in Opel.  Industry Ministry Sebastian said 
that the agreement, which includes a ten-year industrial 
plan, guarantees the future of the plant. It will cut 900 
Figueruelas workers, down significantly from the company's 
original proposal of 1,700, meaning a 12% reduction in the 
plant's current workforce of roughly 7,500.  Workers are to 
vote on a referendum on October 26, including whether to call 
off four days of proposed strikes. (All Media, 10/23) 
 
CHACON