SPAIN THE POLITICAL MANAGEMENT OF THE COVID-19 CRISIS IN SPAIN - La Fondation Robert Schuman

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GERER LE COVID-19, UN TOUR D’EUROPE

                                                           heavily affected, both in Europe and other
                                                           regions.
        SPAIN

THE POLITICAL MANAGEMENT
  OF THE COVID-19 CRISIS IN
           SPAIN

The purpose of this note is twofold. On the
one hand, it aims to provide a series of data
(updated to 9 April) both on the impact of
the Covid-19 pandemic in Spain and on the
government's response and actions to
counter its effects on the health system and
the economy. On the other hand, it provides
a current, and therefore limited and
provisional, analysis of the impact of these
measures on the system of government.1
                                                           According to these data, it can be seen that
                                                           in Spain the incidence of the disease in
To achieve its objectives, the study is
                                                           relation to demography has been highest in
divided into several parts. The first section
                                                           the last 14 days, although it is not the one
presents data (as of April 12) on the
                                                           with the highest mortality rate3, since
incidence of the disease in Spain in
                                                           France, Italy, the UK, Belgium and the
comparative terms to highlight the fact that
                                                           Netherlands have higher rates
the country was one of the most affected by
the Covid-19 pandemic. The next section is
                                                           Political Management of the Crisis
devoted to the description and analysis of
                                                           Description of the public authorities'
the political management of this crisis. The
                                                           response in Spain to the health crisis and its
last section summarizes the main data and
                                                           economic and social effects
forecasts concerning its economic and
                                                           To describe the response of the Spanish
social consequences.
                                                           public authorities to the health crisis
                                                           triggered by Covid-19, it is necessary to
Impact of Covid-19 in Spain
                                                           start from the constitutional division of
According to official data collected by the
                                                           competences between the central and
Autonomous Communities (ACs) and
                                                           regional levels of government. It should be
centralized by the Ministry of Health, Spain
                                                           borne in mind that most health policies such
exceeded 166,000 infections after the first
                                                           as primary care and hospital management
case was registered on 31 January. 2, and
                                                           fall within the competence of the 17
17,000 deaths, the former having been
                                                           regional governments and that the Spanish
recorded on 4 March. Tables 1 and 2
                                                           government's Ministry of Health has few
compare the incidence of the disease in
                                                           powers. The management of many social
Spain to a set of countries that have been
                                                           services such as nursing homes, the age
                                                           group most affected by illness, is the

1I use the term « government system » because in Spain     2 This involved a German tourist on holiday in the Canary
compétences in terms of health lie in the hands of the     Islands (La Gomera), who is said to have been infected in
autonomous communties. They played a central role in the   Germany.
management of the crisis.                                  3 86.2 % of those who died in Spain were aged over 70.

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responsibility of the regional governments.                political and social controversy. During that
Certain policies that may have the most                    weekend, Spain went from 423 infected
decisive impact in countering the                          people on 6 March to 1,621 on 9 and almost
destructive effects of this unprecedented                  30 deaths. This weekend was the last of
health crisis on the economy, such as fiscal               normal life in the country and, in addition to
and      social      policies     (pensions,               the usual sporting and cultural events (the
unemployment benefits) are mainly the                      10 matches played in the first football
responsibility of the Spanish government,                  division brought together more than
although some of them, such as fiscal                      280,000 fans), several political events took
policy, are shared to some extent with the                 place, such as the massive Women's Day
autonomous governments.                                    demonstrations or a Vox party rally
                                                           attended by 600 executives and 9,000
As a result, initially and until the declaration           supporters. The fact that the government did
of the state of emergency on 14 March, the                 not ban these activities but also encouraged
17 regional governments were co-decision-                  participation in the Women's Day street
makers.4 However, the Ministry of Health                   marches provoked strong reactions,
plays an important role, through the Centre                especially when 24 hours later the Minister
for Coordination of Health Alerts and                      of Health, Salvador Illa, radically changed
Emergencies (CCAES), in coordinating the                   his tune and announced that schools would
regions in the face of new health threats.                 be closed for two weeks in the Community
Since the first case of Covid-19 was                       of Madrid (after the Madrid government
reported on Spanish territory on 31 January,               had insisted on demanding such a measure)
the Director of the Ministry of Health's                   and in the region of Vitoria (Basque
CCAES, Dr Fernando Simón, has become                       Country), and furthermore recommended
the main actor in the response to the                      avoiding public gatherings in Madrid and
progression of the disease in Spain and has                the introduction of teleworking for all those
assumed the key responsibility for                         who could afford it.
coordination. While other EU Member
States have strengthened coordination                      The week of 9 to 15 March highlighted the
mechanisms and have provided the                           difficulties of effective coordination
population with a single national telephone                between the Spanish Government and the
number for all incidents related to Covid-                 autonomous regions. Students who had
19, at present 17 information telephone                    stopped going to classes were meeting in
numbers have been put into service in                      public places and many families left Madrid
Spain, one for each Autonomous                             for their holiday homes. Many regional
Community.                                                 governments also called for the closure of
                                                           schools, while the Spanish government
In the weeks following 31 January,                         opposed further restrictive measures.
throughout February and the first week of                  Finally, on 14 March, the government
March, the fundamental message from the                    approved the decree regarding the state of
government was one of tranquillity and                     emergency under Article 116 of the Spanish
confidence that the disease would not have                 Constitution (royal decree 463/2020 - 14
a major impact in Spain. The events of the                 March) and established a single crisis
weekend of 7 and 8 March were one of the                   management command with the Minister of
moments that generated the greatest                        Health at its head, as well as the interruption

4  The body responsible for the coordination and           31st January. However, although the minister declared
management of National Healthcare System is the            after the meeting on 4 February that Spain was ready to
Interterritorial Health Council, comprising the ministry   face the crisis the positions of those participating were not
and 17 regional health services. This council held sever   known. Since December 2018 the ministry does not
meetings in February following the WHO’s warning on        publish the minutes of these meetings.

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of administrative deadlines for public                          These days will gradually be recovered by
records for the duration of the state of                        the employees through overtime. As a
emergency. From then on, with nearly                            result, almost all industrial activity has been
10,000 people infected and 300 deaths, the                      halted. Only plants that had adapted their
response was more vigorous, although there                      production to the manufacture of sanitary
were still problems of coordination and                         equipment were able to continue operating.
effectiveness in the measures implemented.                      Thus,     the     textile    industries     that
                                                                manufactured protective masks or gowns,
In bried, the policy to deal with the health                    the beverage or perfume industries such as
crisis was based on four main lines. The                        DYC, LEA and a few others, which had
first two concern the general confinement of                    converted to the manufacture of
the population at home (in addition to the                      hydroalcoholic gels for hand disinfection,
suspension of all public gatherings) and the                    or certain other industries which, like the
cessation of many economic activities                           SEAT automobile industry, developed
leading to the concomitant presence of                          respirators for medical use, were able to
workers and customers, such as shops and                        continue their activity.
tourism (closure of hotels, travel agencies,
drastic reduction of air and rail traffic and                   The third line of the political response to the
buses by more than 90% as compared with                         crisis has of course been the pooling of
the same dates a year earlier). According to                    health resources to provide hospitals, health
the decree, only those activities considered                    centres and workers with the equipment
essential are allowed: those related to food,                   they need to carry out their activities. The
health, State and armed forces, security                        Spanish Government and the regional
forces, public transport (with significant                      governments have invested heavily in the
restrictive measures in terms of frequency                      purchase of three types of goods: disposable
and       capacity),     telecommunications,                    personal protective equipment (PPE,
essential IT services, veterinary clinics,                      including nitrile gloves, protective masks,
media, electricity supply, cleaning and                         waterproof gowns and suits, tights, etc.),
waste collection services, undertakers, bank                    ventilators or respirators, screening kits or
agencies and notaries, post offices,                            antigens. In the context of a global
transport, logistics and parcel delivery                        pandemic, competition from many national
companies, management of toll roads or                          governments to acquire these goods has
service stations. However, in addition to                       been fierce and this has caused many
this, there are other activities that continued                 problems in acquiring them5, the Spanish
after the promulgation of the decree, such as                   government declared that it had spent 845
a large part of the construction and industry                   million €. In addition, the Ministry of
sectors.                                                        Health has received donations of medical
                                                                equipment from businessmen like Amancio
Fifteen days later, the government approved                     Ortega (Zara) and many others, from the
Royal Decree 10/2020 of 29 March for the                        European Union and countries such as
introduction of "recoverable paid leave" to                     China, Turkey and Taiwan. The
further reduce the mobility of the                              controversy here is whether the government
population and to interrupt the activity of                     and the autonomous regions acted diligently
non-essential industries. Companies were                        and effectively in providing these materials
therefore obliged to guarantee the retention                    before the pressure on hospitals and the
in their posts of employees forced to work                      sectors of the population most vulnerable to
in confinement for a period of two weeks.                       the disease became unbearable.

5Apart from the late arrival of this material and the lack of   640,000 rapid test kits from a company in Shanghai which
protection for the healthcare personnel there were several      was operating without a licence. These tests had to be sent
particularly astonishing episodes like the purchase of          back due to their extremely low efficiency level.

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                                                It is difficult to analyse the response of the
The only thing that is certain is the           public authorities in this health crisis, since
particular impact of Covid-19 on two            information unavailable to the public is
groups that have shown particular               needed to analyse the adequacy of the
vulnerability because they have not been        measures implemented and their degree of
adequately protected. These are the elderly     responsiveness. A certain amount of time
living in retirement homes and care             will be needed to assess the proven
institutions. According to the latest data      effectiveness of these measures. An
published by the Ministry on 3 April, nearly    additional problem in this evaluation is the
25,000 health care workers were already         possible retrospective bias, on which the
infected, representing more than 15% of the     government relies so much to defend itself
total number of people infected. In turn,       from criticism, which implies an assessment
nearly 10,000 older people died in old          of past events in the light of later
people's homes, representing 58% of all         consequences. Given these caveats, an
deaths recorded by the Ministry for Health.     analysis is possible, focusing on the
                                                following five points: (a) the government's
Finally, the fourth line of the authorities'    response         was     excessively       late,
response has been the preparation of a series   uncoordinated and short-sighted; (b) the
of economic measures aimed at mitigating        quality of official data on the disease could
the very damaging consequences of the           clearly have been improved; (c) the
cessation of economic activity. Seven of the    government's negotiating effort to bring
Royal Decrees approved by the                   together the consensus of other political and
Government between 10 March and 7 April         social forces to implement these measures
contain measures to mitigate the economic       was not strong enough; (d) the need to
damage in order to avoid the destruction of     develop a European response to a global
jobs and of the economic fabric. On 17          crisis should not obscure the need to
March, the President of the Government,         improve the national response; and (e)
Pedro Sánchez, announced a package of           many weaknesses in the national response
measures that would mobilise around €200        reveal significant deficiencies in the
billion (an amount equivalent to 20% of         functioning of the public sector in Spain
Spanish GDP) for this purpose. The aim          which highlight the urgent need to improve
was to allocate some €100 billion of public     the quality of governance.
funds, with the rest coming from private
sources, to generate subsidised credit lines    Late response
to guarantee liquidity for SMEs and the         It must be admitted that objectively it must
self-employed, and to activate social           be very difficult for any government to take
protection measures such as a moratorium        a decision that involves closing down most
on mortgage payments for the self-              economic activity, even to avoid a health
employed and workers affected by the            disaster. Moreover, it is true that we are
crisis, or a ban on interrupting basic          dealing with a new and unknown disease, so
supplies (water, electricity, gas). In          it was probably not easy to foresee the
addition, other measures have been taken to     consequences it could have on the health of
support businesses, such as the acceleration    the population and on the increase in
and relaxation of temporary layoff              mortality. However, the government had
programmes and the exemption or                 the experience of a country as close as Italy
reduction of social security contributions      affected by the disease a few weeks earlier.
for companies that keep their staff.            Furthermore, it is difficult to understand
                                                why, after the recommendation not to travel
Analysis of the emergency                       to China, when the crisis broke out in Italy,
                                                the Spanish government did not carry out

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minimum screening of the many travellers         The same applies to the figures for the
coming from that country, when the               number of deaths. The fact that only those
possibility of asymptomatic contagion was        that have been tested are recorded as such
already known.                                   considerably reduces the actual number of
                                                 deaths caused by the virus. Many of these
In these circumstances, it does not seem too     are elderly people who have died in nursing
exaggerated to conclude that the Spanish         homes and have not been tested for Covid-
Government did not make sufficient               19. The Carlos III Health Institute, a public
provision, both in the fight against the         research organization, compares deaths in
various vectors of infection (in particular      recent weeks with those recorded for the
those linked to Italy) and in the provision of   same period last year and concludes that the
the necessary equipment (PPE, respirators,       actual deaths are probably double the
detection kits, intensive care units,            official figures.
protection of the most vulnerable
population such as the elderly) to combat        The problem is the lack of statistics on the
the spread of the virus and that coordination    number of tests performed. The government
between       the      various     competent     does not provide the number of tests
administrations (autonomous regions,             performed on a daily basis, let alone the
central government and the European              number of tests reported as positive and the
Union) could have been significantly             number of tests reported as negative.
improved.                                        However, some scientific studies show that
                                                 the countries or regions with the highest
Official data                                    number of tests performed relative to the
One aspect of particular concern is the          population are those with the lowest
quality of the daily information provided by     mortality rates, because in these cases it is
the Ministry of Health on the evolution of       easier to detect the vectors of infection and
the pandemic. The less accurate this data is,    to isolate more precisely the sources of
the more difficult it is to plan actions to      infection and the people most at at risk.
combat the pandemic and the more difficult
it will be to make decisions to plan for         Consensus (almost) without negotiation
population containment without risking an        Covid-19 has struck Spain at a particularly
increase in infections and deaths. Official      sensitive moment in its political history. In
data are only a very partial reference to the    recent years, at least since the beginning of
reality of the disease: "Cases do not reflect    the economic crisis in 2008, Spanish
(even approximately) infections in the           politics has found itself in a worrying spiral
country, which remain unknown; nor are all       of polarisation and fragmentation, both
deaths caused by the Covid-19".                  ideologically (radical parties of the left and
                                                 right obtained a significant score in the last
Figures suggesting over 165,000 detected         parliamentary elections) and territorially
cases are probably incorrect, as they depend     (with very strong secessionist tensions in
on the very limited capacity for screening,      Catalonia, but also in other territories).
which is carried out only on the most            What is curious is that this deep political
serious cases. According to an estimate by       crisis, which has made it difficult to reach a
Imperial College Oxford, published a few         consensus at the centre of the political
weeks ago and based on the mortality rate        spectrum, has taken place in a few decades
calculated for Covid-19, the number of           in which the ideological moderation of the
infections in Spain is expected to exceed 7      Spanish people has been strongly
million people.                                  reinforced, suggesting that much of this
                                                 polarisation is due more to the supply of
                                                 leaders and political parties than to major

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structural schisms in demand on the part of                the disease, Italy and Spain, and the
the Spanish population.                                    countries of the North, with Germany and
                                                           the Netherlands in the forefront, are proving
In this political climate, it is very difficult to         very difficult and are a litmus test for the
establish the consensus needed to deal with                future of the Union.
a crisis that is already leading to an
enormous reduction in citizens' rights (with               It is true that a global problem such as this
the forced confinement of the population)                  pandemic must be dealt with at the
and that will have a considerable economic                 international level and that the calls for
cost, in addition to the cost it already is                solidarity made by Italy and Spain, as well
having on daily life. So far, the coalition                as by France, should be heard by those
government between the PSOE and                            countries with a more favourable economic
Podemos has taken measures to deal with                    situation. But it is also true that the fear of
the pandemic under the cover of the State of               the countries of the North that the solidarity
Emergency and has managed to get other                     effort they are deploying will be
parties (especially those of the centre and                undermined by ineffective policies should
right, Ciudadanos and Partido Popular) to                  encourage the recipient countries to carry
support these measures in the Congress of                  out governance reforms that are likely to
Deputies. However, these two parties and                   increase their confidence. That is why,
the country's main business associations, as               while the European Union must fully
well as many of the regional governments,                  commit itself to emerging from this crisis,
are already expressing their opposition to                 the countries receiving aid must also take
what they perceive as unilateral decisions.                responsibility for improving the functioning
                                                           of their governance.
Although the government has summoned
all the parties with parliamentary                         Some doubts regarding the Spanish State’s
representation and all the regional                        abilities
presidents to hold a meeting during the                    The main specialists in the functioning of
week of 13 to 19 April in order to begin                   Spanish public administrations 6 have for
negotiating a major political pact for the                 many years been pointing to the main
economic and social reconstruction of the                  problems with these administrations, such
country, this could be a simple marketing                  as the excessive politicisation of technical
operation that would not really lead to this               functions, the lack of genuine professional
major pact, which is indispensable for the                 public management, the deficient and
joint preparation of appropriate solutions to              outdated conception of staff and services
end the crisis.                                            etc. In fact, many of the problems raised in
                                                           this study concerning the Spanish public
The European lifeline                                      authorities' response to Covid-19 reveal a
The Covid-19 pandemic has placed the                       weakness in the latter which we have
whole of the European Union at a                           witnessed since the transition and which it
crossroads. The destruction it is causing and              is increasingly urgent and necessary to
will continue to cause in many EU Member                   remedy decisively.
States is already putting great pressure on
the EU as a whole, perhaps even                            The economic and social consequences
contributing to its explosion. Once again,                 A small sample of data will suffice to obtain
the differences between the countries of the               an idea of the enormous economic and
South, especially the two most affected by                 social cost that this pandemic already has.

6 Rafael Jiménez Asensio, Francisco Longo, Carles
Ramió, Juli Ponce, Salvador Parrado, Manuel Villoria and
Víctor Lapuente, to name but a few.

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To begin with, Pedro Sanchez has                            April, the Munich Institute for Economic
announced a package of measures to                          Research published a study according to
counter the adverse effects of the crisis,                  which each week in which the Spanish
worth the equivalent of 20% of Spanish                      economy is at a standstill would cost
GDP. The unemployment data recorded in                      between 0.8 and 1.6% of GDP.
March (taking into account that the
containment began on the 14th) is an all-                   Some economic newspapers quote reports
time record since these figures were                        from various consultancy firms with
recorded, with an increase of more than                     equally worrying estimates. For example,
300,000 people, while social security                       the daily Libremercado reports that experts'
membership has decreased by more than                       estimates of the fall in GDP for 2020 range
800,000 people. Employment contracts                        from 5 to 13%.
have also decreased by 26% compared to
the same month of last year 2019.                           These losses in GDP will be much more
With regard to temporary labour regulation                  painful for countries like Spain, compared
procedures7, the Ministry of Labour                         to other countries like Germany. For the
acknowledges that more than 650,000                         year 2019 Spain recorded a public deficit of
applications were submitted between 16                      nearly €33 billion, or 2.6% of GDP, and a
and 31 March, which, according to data                      debt of €1.19 trillion, or 95.5 % of the GDP.
from the Periódico de Cataluña, concern                     Germany's debt totals only 59.8% of the
more than 2 million workers.                                GDP, which will allow it to access credit in
                                                            a much more advantageous situation than
It is still too early to make a sufficiently                Spain.
rigorous assessment of the economic and
labour costs that this crisis will entail, as it            Spain is facing an unprecedented health
is not known how long the current situation                 crisis and its responses, although adequate,
will last or how long it will take to return to             were probably too late and too improvised.
normal activity. Furthermore, some of the                   In particular, we have highlighted the lack
predominant economic activities in Spain,                   of reliable data and the lack of coordination
such as tourism, have a strong seasonal                     between regions. These hesitations only
component, so that the evaluation of the                    reveal the weaknesses of a system of
cost depends on when the companies in this                  governance that should be reformed as a
sector will be allowed to resume their                      matter of urgency.
activity. The Easter holidays, a period of
high hotel and travel occupancy, have
ended and it is not certain that the situation                           Fernando Jiménez Sánchez est
will return to normal before the summer                                Lecturer in Political Science at the
season.                                                                             University of Murcia

In spite of this, some economists have made
forecasts taking into account different
scenarios and in all these cases, the cost of
the pandemic is very high. For example, a
study by BBVA Research, the Fedea
Foundation and the Rafael del Pino
Foundation estimates a drop in GDP of 4 to
8% according to different scenarios. On 1

7  These procedures allow businesses to make temporary      inactive or has been reduced in exchange for maintaining
adjustments to the workforce so that the State bears 70 %   the level of employment once the state of emergency is
of the wage costs of workers while the business is          over.

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