VZCZCXYZ0001
RR RUEHWEB

DE RUEHC #6750 2871951
ZNY CCCCC ZZH
R 141932Z OCT 09
FM SECSTATE WASHDC
TO AMEMBASSY MADRID 2818

C O N F I D E N T I A L STATE 106750

NOFORN
SIPDIS

E.O. 12958: DECL: 10/14/2034
TAGS: PINR ECON EFIN SP
SUBJECT: (C/NF) KUDOS FOR REPORTING ON SPANISH ECONOMY
(C-RE9-02128)

REF: A. MADRID 001205
¶B. MADRID 000071
¶C. MADRID 000360
¶D. MADRID 000375
¶E. MADRID 000552

Classified By: MICHAEL P. OWENS, ACTING DIR, INR/OPS. REASON: 1.4(C).

¶1. (C/NF) WASHINGTON ANALYSTS APPRECIATED REFTELS REGARDING
THE RECESSION IN SPAIN AND THE PLAYERS AND FACTORS THAT
INFLUENCE SPANISH ECONOMIC POLICY. WE ESPECIALLY WELCOMED
YOUR INSIGHTS INTO HOW THE ECONOMIC DOWNTURN IS AFFECTING
ZAPATERO AND HIS CABINET AND INTO FACTORS SHAPING SPANISH
DOMESTIC ECONOMIC POLICY DECISIONS AND INTERNATIONAL
AMBITIONS. YOUR ASSESSMENT OF WHY MADRID INSISTED ON
PARTICIPATING IN RECENT G-20 SUMMITS WAS VERY TELLING, AND
HELPED FLESH OUT RECENT WRITTEN PRODUCTION ON THIS SUBJECT.
INFORMATION ON THE LEADERSHIP DYNAMICS AFFECTING DOMESTIC
ECONOMIC POLICY ALSO FEATURED PROMINENTLY IN RECENT ANALYSES
OF SPANISH ECONOMIC POLICY DECISIONMAKING. WE ALSO APPRECIATE
EMBASSY'S WEEKLY ECONOMIC REPORTS, WHICH HAVE MADE A REAL
DIFFERENCE IN EVALUATING THE VULNERABILITY OF THE SPANISH
ECONOMY DURING THE GLOBAL ECONOMIC CRISIS. WE WELCOME ANY
ADDITIONAL REPORTING ON THE IMPACT OF THE RECESSION ON
SPANISH ECONOMIC POLICY AND THE CREDIBILITY OF ZAPATERO AND
HIS CABINET, AS TIME AND RESOURCES PERMIT. IN PARTICULAR, WE
WOULD APPRECIATE YOUR THOUGHTS ON THE FOLLOWING:

¶A. (C/NF) HOW DO SPANISH OFFICIALS REGARD ZAPATERO'S
MANAGEMENT OF THE ECONOMY? IS THE CABINET UNIFIED ON ECONOMIC
POLICY? HOW MUCH INFLUENCE DOES MINISTER SALGADO HAVE? DOES
THE MORE AUSTERE BUDGET PROPOSED IN LATE SEPTEMBER AFFECT
SALGADO'S CREDIBILITY WITH THE PUBLIC, OPPOSITION, AND/OR
BUSINESS/FINANCE COMMUNITY?

¶B. (C/NF) HOW DO SPANISH OFFICIALS SEE SPAIN'S ROLE IN
INTERNATIONAL ECONOMIC POLICY GROUPS, LIKE THE G-8 AND THE
G-20, IN LIGHT OF ZAPATERO'S PARTICIPATION IN RECENT
MEETINGS? HOW DOES THE BUSINESS/FINANCE COMMUNITY VIEW
SPAIN'S ROLE?

¶C. (C/NF) HOW DO SPANISH OFFICIALS VIEW FRANCO-SPANISH
RELATIONS, GIVEN THAT FRENCH PRESIDENT SARKOZY HELPED SECURE
A SEAT FOR SPAIN AT THE G-20 AND OFFERED HELP SPAIN PREPARE
THE EU PRESIDENCY? DO ANY MADRID OFFICIALS SEE FRANCE AS
TRYING TO IMPOSE ITS VIEWS ON SPAIN?

¶2. (U) PLEASE CITE C-RE9-02128 IN THE SUBJECT LINE OF
REPORTING IN RESPONSE TO THE ABOVE QUESTIONS.
CLINTON