Business Features
Speed limits to control oil crisis rev up debate in Spain (Feature)
Mar 2, 2011, 15:34 GMT
Madrid - Controversy was raging in Spain Wednesday over the government's attempts to introduce lower speed limits - among other plans - to reduce oil consumption for fear of a supply crisis brought on by unrest in Libya and other Arab countries.
The move to save energy with lower speed limits was described by Spanish analysts as breaking new ground in European Union responses to the current oil price hikes.
'All the countries should naturally do whatever they can in the area of energy efficiency, because that will be good for the climate and for our energy security,' European Climate Action Commissioner Connie Hedegaard told Spanish media.
In Spain itself, however, the reaction was often less enthusiastic.
Rising oil prices are particularly threatening for Spain, which depends on imports for 80 per cent of its energy needs. Oil covers nearly half of the country's primary energy needs, and Libya is its second supplier after Iran.
An eventual oil crisis could threaten Spain's feeble economic recovery, Deputy Prime Minister Alfredo Perez Rubalcaba said.
Spain has been one of the countries hardest hit by the lingering global financial crisis, and there has even been concern that it might need to be rescued financially by the EU and the International Monetary Fund. The new energy squeeze only exacerbates the situation.
To ward off the threat of an energy crisis, the speed limit on highways and motorways will be reduced to 110 kilometres from 120 kilometres per hour from March 7 onwards for as long as necessary, the government announced.
Other new measures include cutting the ticket prices of commuter and medium-distance trains - as well as, possibly, those for subways and buses - by 5 per cent.
The government also intends to save energy in public buildings and on roads by using low-consumption light bulbs, to increase the proportion of biodiesel used in diesel fuel, and to reduce the number of cars for official use.
Formula One driver Fernando Alonso, whose race cars speed at more than 300 kilometres per hour, said the 110-kilometre speed limit would make it difficult for drivers to 'stay awake.'
Rucalcaba, the deputy prime minister, countered that the limit was in force in the United States, where 'I have never seen them drive while being asleep, nor the Swedes, nor the Norwegians, nor the Russians, nor the British, nor the Irish,' all of whom observe similar speed limits.
The government calculates that lowering the speed limit will save Spain 1.4 billion euros (1.9 billion dollars) annually in oil imports.
However, the conservative opposition, motorists' associations and other critics slammed the measure as inefficient, partly because highways and motorways only make up 60 per cent of national traffic.
Not only did the 'Soviet-style' 110-kilometre limit restrict drivers' freedom, but it was also expensive, because it would force authorities to alter road signs and reduce fuel tax revenue, critics said.
The measure could also increase accidents, as happened during the 1970s oil crisis, when Spain's first, 130-kilometre speed limit was introduced, drivers' associations warned.
The government was also criticized for its plans to slash the price of public transport. The Madrid region and north-eastern Catalonia said they could not afford such reductions, which Madrid officials estimated at 45 million euros annually.
Stopgap measures were not sufficient to deal with Spain's energy problems, said Javier Garcia Breva, president of the Fundacion Renovables, a foundation seeking the promote the use of renewable energies.
Spain needed to increase its independence by relying on locally produced renewable energies, and by permanently saving energy in areas such as buildings and transport, Garcia Breva said.
Read more about Spain Energy
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
