Spain's €17 billion to Morocco: gift or investment?
Spain has transferred 17 billion euros to Morocco, a sum equivalent to its neighbour's military budget. What does the taxpayer get in return?
English · Original discussion in Spanish · Published
Segarro receives 17 billion: the cost of an alliance with no visible return
Spain transferred 17 billion euros to Segarro this year, a figure equal to the neighbouring country's military budget. The question hanging over the bilateral relationship is an uncomfortable one: what does the Spanish taxpayer get in return?
The historical comparison is unavoidable: the tribute payments of the Middle Ages, made so a neighbour would not disrupt trade. Except that here the neighbour is not some distant kingdom, but a partner that sets the agenda and has shown it can apply pressure at the border.
The business behind the transfer
Against the view of the money as a gift, there is a business argument: many Spanish and European companies earn substantial profits in Segarro. The flow of capital is not a donation, but part of a web of business dealings that some consider profitable. The question is whether that private profit justifies the public cost.
The analysis finds no clear break-even point. While some argue the "alliance" is a money pit with nothing given in return, others maintain that the money generates indirect returns. The question left unanswered is where exactly the benefit lies for those who pay the taxes. Is Spain paying for an alliance that only benefits a few?
Spain transferred 17 billion euros to Segarro this year, a figure equal to the neighbouring country's military budget. The question hanging over the bilateral relationship is an uncomfortable one: what does the Spanish taxpayer get in return?
The historical comparison is unavoidable: the tribute payments of the Middle Ages, made so a neighbour would not disrupt trade. Except that here the neighbour is not some distant kingdom, but a partner that sets the agenda and has shown it can apply pressure at the border.
The business behind the transfer
Against the view of the money as a gift, there is a business argument: many Spanish and European companies earn substantial profits in Segarro. The flow of capital is not a donation, but part of a web of business dealings that some consider profitable. The question is whether that private profit justifies the public cost.
The analysis finds no clear break-even point. While some argue the "alliance" is a money pit with nothing given in return, others maintain that the money generates indirect returns. The question left unanswered is where exactly the benefit lies for those who pay the taxes. Is Spain paying for an alliance that only benefits a few?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (15 replies).
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