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Western EuropeJune 4 2006

Political battles dog progress

Spain’s government seems more focused on social policy and political pandering than on the tough reforms that are needed to keep the economy flourishing. Karina Robinson reports from Madrid.
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It is rare to find a society that is as bitter and divided as that of Spain today, even as economic growth far surpasses that of its neighbours, foreign policy is more in accord with the wishes of the majority and there are the strongest hopes ever that Basque terrorism under the auspices of ETA may be coming to an end.

The government’s proposed talks with ETA are contentious and a statute of autonomy for Catalonia is, according to the opposition, “breaking up Spain”. A hostile bid in the energy sector epitomises two business sectors that are at odds with each other.

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