Spain takes over the presidency of the European Union for six months from Jan. 1, with ambitious aims of securing the bloc's economic recovery even as it tackles severe challenges to its economy at home.
Following Sweden's busy six months at the helm, Spain has its work cut out to overcome a growing budget deficit while trying to work out a coordinated strategy among 27 EU member states to guide them out of the financial crisis.
Sweden's presidency set a high standard for planning and organisation, successfully ushering in the Lisbon reform treaty, designed to smooth decision-making in the EU.
Spain has sought to play down expectations for its tenure, with Foreign Minister Miguel Angel Moratinos saying this month it would apply itself modestly and discreetly.
"Spain will not abandon its responsibilities … but we will do it with modesty, with discretion, through our work and our support," he told a briefing in Brussels.
Political analysts say Spain's high ambitions for its presidency could ultimately make it unfocused, while others have expressed concern about the extent of Spain's preparations.
In a policy paper setting out its agenda, Spain lists four priorities, including "guaranteeing" the bloc's economic recovery, fully applying the Lisbon treaty which creates a permanent EU president and a high representative for foreign affairs, and strengthening citizens' rights.
It is the economic agenda that is most challenging, particularly the need for member states to coordinate action as they phase out policies introduced to absorb the effects of the financial and economic crisis.
"The member states have taken unprecedented fiscal measures to combat the effects of the crisis," Spain says in the policy document (www.eu2010.es/en/), which emphasises the need to roll back one-off measures without further inflating deficits.
Yet, among the countries that will struggle the most to meet targets in the EU's Stability and Growth Pact, which include a budget deficit of less than 3 percent of GDP, is Spain whose deficit is set to rise to 10 percent of output this year.
With unemployment at about 20 percent and the downgrading this month of its debt outlook by ratings agency Standard & Poor's, Spain is among the worst affected by the economic crisis and may struggle to pursue an ambitious economic agenda.
BUSY AGENDA
Another hefty responsibility will be ensuring that the Lisbon treaty, which came into force on Dec. 1, works as it was designed to, streamlining decision-making via the presidency and giving the EU a more powerful voice in foreign affairs.
Spanish Prime Minister Jose Luis Rodriguez Zapatero and the EU's new president, Herman Van Rompuy, met in Madrid two weeks ago to discuss how they would balance their roles. Spain has since appeared keen to give Van Rompuy the lead.
That should avoid, at least for the time being, any tension between the country holding the six-month rotating presidency and the EU president, who will have a renewable 2-1/2-year term. But an unexpected event or a new crisis could destabilise that delicate leadership balance.
At the same time, Spain will help to establish the European External Action Service, a diplomatic corps created by the Lisbon treaty that is designed to support the work of the new high representative, Britain's Catherine Ashton.
Ashton is untested in foreign affairs and her ability to project the EU on the world stage will depend to a large extent on the quality of the diplomatic corps built around her.
With 12 summits in six months, including with Latin America, the United States, Russia, Canada, Egypt, Chile, Japan, Morocco and Pakistan, the EU's foreign affairs agenda is packed.
Spain also hopes to follow a full slate of social issues before June 30, including a plan for greater gender equality in the workplace, an initiative to strengthen citizens' rights, and programmes to tackle violence against women.
