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Messy nomination scandal rocks Spain’s ruling party

Although Spain has been without a functioning government for more than eight months, that hasn’t stopped the acting government from making controversial decisions.

Mere minutes after acting Prime Minister Mariano Rajoy’s failed investiture vote last Friday came the contentious announcement: The government was to appoint Jose Manuel Soria to represent Spain as an executive director at the World Bank – a position that last year paid an annual salary of around $250,000 tax-free, according to the World Bank website.

Soria is the former Spanish industry minister who resigned last April after the Panama Papers leak linked him to an offshore tax company, something he initially denied.

“Politics is an activity that must at all times be exemplary both in its pedagogy and its explanations. When that does not happen, the corresponding responsibilities must be accepted,” said Soria in his resignation letter this spring.

The announcement of his appointment caused widespread criticism of Rajoy, his party, and Economy Minister Luis De Guindos, who announced the nomination. Even major figures from within the ruling Popular Party (PP), of which Soria was also a member, were befuddled as to why the government would make such a contentious move in the midst of trying to form a government.

“It’s probably difficult for many people to understand this appointment,” said Alberto Núñez Feijóo, at a press conference on Monday. He is the current PP president of Spain’s North Galicia region and stands for re-election later this month. He said it was “essential” for the economy minister to explain his actions.

Despite the criticisms, Rajoy defended the decision to nominate Soria, implying that the ex-minister got the position because he was the most qualified candidate.

“Soria is a civil servant and he competed in a contest for the position just like any other civil servant. This contest has been determined and I have nothing else to add,” said Rajoy on Monday, at a press conference in China.

The plot quickly thickened when Spanish media revealed that, contrary to Rajoy’s assertion, the position was not openly announced and had only vague requirements.

The Union of Independent Civil Servants (CSI-F) said Soria was “hand-picked” on Tuesday and called the appointment “a serious case of politicizing the public administration,” adding that the position was not published in the official state bulletin posting civil service job offers.

Not inspiring confidence

Whether this appointment was based on nepotism (the economy minister had previously said he considers Soria a dear friend, and even included him in a book dedication), an owed favor, or plain political clumsiness continues to be hotly debated.

“If a government is trying to win the confidence of voters and other politicians, why would they nominate an ex-minister? The government should be setting a good tone at the top and engaging in ethical behavior,” Madrid-based lawyer Ricardo Seoane Rayo told Anadolu Agency.

After the revelation that there was no open competition for the position and amid rising criticism, Rajoy changed course and asked Soria to renounce the nomination.

Soria gave up the position “at the request of the government” due to “disproportionate” criticism of his nomination, he said in a statement.

Scrambling to find a new nominee before Wednesday’s midnight deadline to submit their choice to represent Spain at the World Bank, the government tapped Fernando Jimenez Latorre, Spain’s executive director at the International Monetary Fund.

On Thursday, in a rare move, bickering opposition parties united in Spain’s Congress to pass a motion demanding that the economy minister explain his actions in an urgent plenary session in Congress, according to Spanish media.

However, despite passing the motion, on Friday the PP’s vice-president, Soraya Sáenz de Santamaría, told a press conference that the economy minister will not testify to Congress but will instead speak to an economics commission.

“An ‘acting government’ does not have the support of the house, and therefore, is not subject to its control,” said Santamaría.

The saga is certain to continue.

Closer to forming a govt?

Even though this latest scandal has pushed opposition parties closer together in their antagonism towards Rajoy, Spain still seems a long way off from having a functioning government. The parties have less than two months to agree on a majority coalition or voters will be forced to go to the polls again this December– the third national elections in little more than a year.

Despite Rajoy’s attempts to form a grand coalition, German-style, between the two largest parties – the Socialists and the PP – the Socialists voted against the proposal on Friday. Before June’s election the Socialists tried to form a “progressive” coalition, but failed to gain the support of far-left Podemos.

Amid the failed investitures and two elections since December 2015, none of the four major political parties given the task to put together a government have undergone significant leadership changes.

“It’s mission impossible. My impression is that this has turned into a game of chicken and everyone is waiting until the last possible moment to make any moves,” Antonio Argandoña, a business ethics professor at IESE Business School, told Anadolu Agency.

“I’ve never seen such a degree of resignation in Spanish society, people are turning their backs on politics which is very dangerous. I’m afraid the opportunistic behavior of the parties will have a real drag on Spain’s recovery,” said Marcel Jansen, a professor of economy at Madrid's Autónoma University.

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