Juan Carlos, humble, comes to Dilma with his hand outstretched.
With Spain in crisis, the monarch arrives with 14 business leaders for a meeting with President Dilma Rousseff today; his intention is to expand business with Brazil; Spanish companies, such as Telefonica and Santander, are considering selling assets in Latin America.
247 – The King of Spain, Juan Carlos I, meets with President Dilma Rousseff this Monday at a time of crisis and fragility in his country. The meeting takes place around 11:30 am at the Planalto Palace, preceding a lunch at the Ministry of Foreign Affairs. In these times, the conversation between the two leaders can be seen as the arrival of a king bowing to a government that has learned to command respect. If years ago it was developing countries that looked to strong economies like those of Europe as a refuge, today the relationship is reversed; it is Spain that seeks Brazilian assistance.
The king is traveling accompanied by a group of Spanish businesspeople interested in expanding their businesses in Brazil. Spain is the second largest foreign investor in the country, with a capital stock exceeding US$85 billion. In 2011, bilateral trade totaled US$7,97 billion – representing a 20% increase compared to 2010.
The scenario is far from encouraging for Spanish companies, which see Brazil as a means of survival. The Santander bank, in a poor financial situation but with a strong presence in the country, has already proven that Brazilian lands are vital to its sustenance. Brazilian profits represented no less than 28% of the financial institution's total profits at the close of 2011.
Another example is Telefonica, which has seen its profits plummet, but considers Brazil its mother country, as the only good news for the company comes from here. The operator experienced a 46,9% drop in its 2011 results. In Brazil, Vivo, a subsidiary of the operator, contributed €3,4 billion to its profit, representing more than half. Both companies have already signaled their interest in selling assets in Latin America.
Primarily for this reason, the meeting at Itamaraty, presided over by Dilma and Juan Carlos, will be attended by representatives of 14 Spanish entities: in addition to Santander and Telefonica, Repsol, Iberdrola, Iberia, Isolux, Abengoa, Gas Natural Fenosa, Indra, Acciona, CAF, Talgo, Navantia and Airbus Military will be present.
Other topics to be discussed at the meeting include expanding economic relations between the countries and a possible solution to the problems faced by Brazilians entering Spain and, more recently, by Spaniards in Brazil. This is the king's first trip abroad since he had a hip replacement surgery, following an accident during a controversial elephant hunt in Africa. From Brazil, Juan Carlos will travel to Chile.
With information from Agência Brasil