ANA PALACIO, foreign minister in Aznar's administration (and who we miss particularly because of his successor in the Zapatero's cabinet, the truth-twisting, gaffe man mister Moratinos), has a superb piece today on the Wall Street Journal eloquently titled "The Incredibly Shrinking Spain":

In some Spanish political circles, people wonder why Condoleezza Rice didn't come to Madrid on her grand European tour last week. But the omission shouldn't surprise anyone. In the 10 months since José Luis Rodríguez Zapatero took office as prime minister, Spain has abandoned a high-profile foreign policy and today relishes in an ill-defined role as a second-rate player on the world stage.

It did not have to turn out this way. When Mr. Zapatero took over last March, Spain was the world's eighth largest economy, the sixth biggest investor worldwide (second in Latin America) and the fifth most popular destination for investment. It was one of the most open economies in the world, boasting a balanced budget and a growth rate double the EU average. It was at the height of its political influence in Europe and the world in recent memory.

In no time, this inspiring picture turned dark. In his first action of note in European affairs -- the final negotiations on the new European Constitution -- Mr. Zapatero negotiated away Spain's position of influence in the EU by diluting its voting powers in the new constitution. In economic policy, he seems driven by an obsession to intervene, from limiting stores' opening hours to backing an attempt to raise the minimum wage. Of course, the economic costs of mismanagement aren't felt by consumers immediately. But the Bank of Spain has revealed that only eight months into Mr. Zapatero's term, direct foreign investment had fallen by 80%.

Read the rest; if you can't because you don't have a WSJ subscription, well, don't tell anybody but you can find the whole thing here.