The statesman.

Former Spanish Prime Minister Jose Maria Aznar has the luxury these days of speaking his mind. The driving force behind Spain's return to the fore among world powers, he makes no bones about being a U.S. ally. Nor does he shrink from making the case for taking on terrorists, or from flatly stating that Venezuelan and Cuban leaders Chavez and Castro are not good for Latin America. While he remains an advisor to the Spanish government, Aznar says that he has no political aspirations and instead will spend his time writing, attending conferences, devising political strategy and teaching at Georgetown University in Washington, D.C. Aznar spoke with LATIN TRADE Editor-in-Chief Greg Brown and Spanish Editor Andres F. Velazquez about the dangers of a return to populism in the region.

Spanish investors have already made big investments in Latin American banking and telecommunications, among other areas. What opportunities await them in the region?

If circumstances are favorable, there might be some collaboration between small and medium-sized businesses in Spain to increase the presence of Spanish companies in the region. Spain is the second-largest investor in Latin America. Its strategic position is important, and not just for historic, cultural and family reasons but for economic reasons. Very big businesses have gone there, so what's left to do is that the investment continues to grow.

Any sector specifically?

One shouldn't close the door to any sector.

Does political instability in places like Bolivia, Ecuador and Venezuela give pause to Spanish investors?

It's not good news. Our investment is strategic and will not leave the region. What is happening is that the message that is sent to the world is that the influence of Castro and Chavez over Latin American countries is a negative one. Populism in Iberoamerica is no longer a risk, it's a reality. It's a reality that affects Venezuela, Ecuador and Bolivia. We no longer talk about the risk of a return to populism. We talk now about the firestorms that such populism causes.

During your time in office, Spain regained its position among the world's economic and political powers. What is your outlook for the coming years?

Spain became the eighth-largest economy in the world and enjoyed its highest level of prosperity in history. Never had Spain grown so much and so continuously. This happened because the economy was liberalized and because Spain opened itself to the world. If reforms do not continue, paralysis will set in on the Spanish economy and I think we're already on our way toward that. The incoming government will benefit from a certain momentum, which will last a long time. But if serious reforms are not taken into consideration the Spanish economy eventually will suffer.

What has been the political price of being an ally of the United States?

There would have been a higher price to pay for not doing so, absolutely. It's not good to put on the shoulders of the United States the responsibility of keeping the world in reasonable shape.

What will happen to the European Constitution now that French and Dutch voters have rejected it?

The European Constitution is done for. Europeans do not believe in having a European council.

Do you agree with the policy of pursuing terrorists into other countries?

Spain will not follow this policy for now. But Spain once supported this policy. The world today is at war against terrorism. This war has no frontiers, recognizes no sovereign powers. As a result, the choice to not go after terrorists where they are means that they will come looking for you. I know well what terrorism is, having survived a terrorist attack [in April 1995, when Basque ETA separatists bombed Aznar's car]. I know what it means to fight Spain's terrorism and international terrorism. You have to search them out where they are. The terrorists aren't going to quit. They are not rational, and they have a very clear objective. The very clear objective they had for Spain was to overturn the government and to frighten ordinary Spaniards.

Considering that, would you say that they won?

In war there are good moments and bad. The terrorists in Spain got what they wanted, clearly.

What is your view of the alleged relationship between Venezuelan president Hugo Chavez and Colombian guerrillas?

I think that the Chavez is a factor and that he is exporting insecurity over the entire continent. I think that the relationship between he and Castro is completely negative to the interests of Latin America. I think that what is happening now in Bolivia, what happened in Ecuador, are symptomatic of this.