Basque-Country-Special-Feature-as-published-in-The-Guardian-09-10-14

4 _ BASQUE COUNTRYSuccess theBasque wayINTERVIEW President ofthe Basque Country sincethe end of 2012, InigoUrkullu is building on theregion’s strong industrialbase, internationalisingits economy and creatingan economic powerhousewithin Europe, while stayingtrue to his political idealsof social cohesionHow has the Basque Country changedsince the days of Eta?Our political, social and economic historyhas been shaped by the phenomenon ofterrorism. Fortunately, there were Basquecompanies, even during the most difficulttime of the years of terrorism, who in spiteof the threats maintained their commitmentto stay here. What this meant wasthat despite the violence, the Basque economygrew. This very committed businessclass assumed the risk, and because ofthat, foreign investment was still possible.There is no comparison between the currentsituation and the unfortunate situationwe lived through in the past. Thistime of peace has to be an opportunityfor the evolution of the Basque economy.If we were able to grow during a time ofviolence, now we are at peace we must beable to grow even more, especially once weget over the economic crisis. On top of ourown industrial and economic culture, wenow offer to all types of investors a guaranteeof peace and calm and absolutelynormal business conditions.What was your reaction to the “no” resultof the Scottish independence referendum?I would express my favourable opinion onthe fact that the process was legitimate andit was possible for Scotland to freely decideits political future. We should value thatat a time of voter apathy we have witnessedan act of political legitimisation. Therewas massive, unprecedented voter participation.For the first time in the history ofthe European Union a stateless nation hasbeen able to decide if it will participate inthe European Union within a state or byitself with the same conditions as the restof the states. The right to consult and toThe Basque Country:a global brandbe consulted and to decide the future is nota political idea. It is a democratic principlethat citizens can choose.What is your outlook for the Basqueeconomy?Our estimates indicate that this year theBasque economy will grow by one percentand in 2015 it will grow 1.7 percent. This isdue in great part to the great effort that ourindustry is making in innovating and in goingout and finding new markets. We have adiversified and internationalised industrialsector that spans areas such as energy, aeronautics,machine tools and automotive. Wewant to consolidate the size of industry to25 percent of our GDP. We are placing priorityon innovation and knowledge: by 2020we want to invest €10 billion in R&D.What is your government’s economicstrategy?Since the beginning of our administrationour intention has been to preserve socialwelfare, education, health and social policybecause our model of society is based onIn a bid to raise the region’s profile on theinternational stage, the Basque governmenthas earmarked €105 million overthe next three years for the launch of its‘Basque Country’ brand. Outlining the planin April 2014, the region’s president, InigoUrkullu, said his government will help to internationalisemore than 1,500 companiesin the period 2014-2016, set up 200 centresacross 25 countries in a “global Basquenetwork”, as well as bring four major“We stand foran economicmodel thatcombinesrigour, investmentstimulus,job creation andsocial welfare”social cohesion. Westand for an economicmodel thatcombines rigour,investment stimulus,job creationand social welfare.We believe that thisis the right way toreturn to growth ina sustainable andcohesive manner.How would you like the Basque Countryto be perceived?Globalisation doesn’t mean we have tolose our individuality. The Basques havetheir own identity and their own culture.I hope that the citizens of the world willbegin to get to know us for the positives,and not for the negatives from the pastwhich have been unfairly associated withus as a people.read the full q&athe-report.net/basque-countryinternational events to the Basque Country,one of which will be in collaboration withthe United Nations. “We need to gaininfluence,” said Marian Elorza, the Basquesecretary of external affairs, who addedthat the region plans to forge alliances withat least eight others, including Aquitaine,Flanders, Bavaria, Queretaro and Jiangsu.Writer: James BadcockA DIPLOMAT’S VIEWDerek DoyleBritish consul and seniorUK Trade & Investment adviser“All iron”UK RELATIONS Basque businesses have largely weathered the economic crisis inSpain by expanding further into international markets. This is a good time, then,to rediscover the region’s close historical relationship with the UKThanks to its “specialrelationship” with Britain’sRolls Royce, Basque turbinemanufacturer ITP is confidentof its futureBilbao’s Athletic Club, one of Spain’smost successful football teams, wasformed in 1898 due to influx of Britishengineers and businesspeople whocame to build railways and steelworks.From heavy industry to hi-tech:the Basque-UK connectionAs well as being the UK government’sdiplomatic representative inthe Basque Country and NorthernSpain, Derek Doyle is the seniortrade and investment adviser at theBritish consulate in Bilbao. His remitis to promote and protect Britishbusiness interests while alsobeing alert to new opportunitieswith respect to inward investment.The club’s origins can still be heard onmatch days when fans chant “Aliron”,a word that derives from “all iron”,which was shouted by miners whenthey discovered a seam of good ore.Beyond the jokes about shared wet weather and thefootball connection with Basque teams such as AthleticBilbao having British origins, there is a long and deeprootedcommercial relationship between the UK andthe Basque Country.Formal commercial links go back to 1474, when a tradecharter was signed by King Edward IV and reciprocatedin Guernica whereby Basque merchants could freelytrade with the protection of the Crown in England,and English merchants could do likewise in the BasqueCountry. But the explosion in UK-Basque connectionscame after the industrial revolution. British steel companieswere interested in the region’s iron ore reserves,building railways to aid exports from Basque ports. Thenlocal businessmen realised that by importing Britishcoking coal they could develop a Basque steel industryand joint ventures flourished.The conflicts of the 20th century made the connectioneven deeper. “A Basque ship owner by the name of SirRamon de la Sota put his merchant fleet at the disposalof the British Crown during the First World War, andwas knighted in return for his services, and that linkcontinues,” says Derek Doyle, the UK consul in Bilbao.Following the bombing of Guernica during the SpanishCivil War, 4,000 children from the Basque Country wereevacuated to the UK.“Basically, everything that triumphed in Britain in theearly 20th century triumphed over here around 30 yearslater. A steel and iron industry developed, as did shipbuilding.Our first steel ships were British,” says Jose AngelCorres, chairman of Bilbao’s chamber of commerce.Now cooperation is focussed on more technological sectors,such as aeronautics. A partnership between Britain’sRolls Royce and Basque engineering firm SENER createdITP, whose CEO Ignacio Mataix is confident of the futurethanks to this “special relationship”. He says that “50 percentof future engines built to fly will have an ITP turbineinside,” owing to Rolls Royce’s 50 percent market share.Energy is also a key sector in the region and power giantIberdrola is a good example of how Basque business hasinternationalised in recent years. CEO Ignacio Galanrecently said that Iberdrola is now “more British, moreAmerican and more Mexican than it is Spanish”, whileannouncing that 41 percent of the company’s planned €9billion investment in 2015 will be in the UK.For Jorge Unda, managing director of engineering firmSENER, opening a UK branch could serve as a steppingstone before crossing the Atlantic. “If you want to get intothe US market from Spain, it’s very difficult. Our historicrelationship with British companies will allow us to arrivein the US already being ‘British’.”Charting trade and industrial relationsbetween the UK and the regionthat go back 500 years, Doylebelieves British companies shouldseize on positive Basque perceptions:“I think we have a privilegedposition with respect to our relationshipbecause we have all thattradition, all that historic connection,and at the end of the day weare liked and we are admired so weneed to take advantage of that.”Doyle believes that the BasqueCountry’s business culture and thesolid support the private sectorreceives from the region’s governmenthave brought about a realsuccess story. He cites the percapitaGDP of around €30,000, thehighest standard of living in Spain.Now that the terrorist violence ofPowering BritishdevelopmentBilbao-based energycompany Iberdrola isteaming up with ScottishPower in a majoroffshore wind powerproject in the NorthSea. Planning permissionwas granted inJune to allow work tocommence on EastAnglia One, a projectwhich will generatecapacity of 1,200megawatts (MW). Itwill create up to 2,700jobs during constructionand could power820,000 UK homes.This is the first of sixplanned 1,200MWphases within theoverall East Anglia UKRound 3 offshore windzone, which couldeventually compriseup to 7,200MW.For Iberdrola, itsannual investment inthe UK has more thandoubled since theintegration of ScottishPowerinto the firmin 2007, up from £600million in 2006 to £1.2billion in 2013.Iberdrola CEO IgnacioGalan told UK energyand climate changesecretary Ed Daveyin June that “the verylarge investments thatIberdrola is making inthe UK are important insecuring energy suppliesfor the country inthe future”.Iberdrola’sUK investmentsarehelping tosecure thecountry’s futureenergysupply“Britain is admiredhere, so we need to takeadvantage of that”Eta has ended, the British diplomatbelieves that the region is ready toreally take off. “The violence distortedthe picture; there were a lotof important things going on thatwere missed.”read the full q&athe-report.net/basque-country