Basic statistics of Spain, 2011
Executive summary
Key recommendations
Assessment and recommendations
-The economy is suffering a protracted recession
-The current account deficit has fallen markedly but the trade balance will need to improve further
-Restoring banks’ access to funding is the most urgent priority
-Steps have been taken to accelerate the restructuring and resolution of banks
-Resolution of non-viable banks needs to impose losses to some creditors to protect tax-payers better
-Reform of bankruptcy procedures can accelerate restructuring
-The government has introduced large front-loaded budget consolidation
-Ambitious budgetary rules have been introduced
-Pension reform has damped the expected increase in ageing-related spending but further reform is necessary
-Budgetary consolidation should be combined with a reform of the tax system, notably to make it more green-growth friendly
-Progress in labour market reform is considerable but important challenges remain
-Ensuring that employment protection is not a burden for hiring
-Promoting job creation through more flexible adjustment of wages
-Strengthening activation
-Ensuring that youth acquire the skills needed in the labour market
-Reforms to raise productivity can strengthen competitiveness
Bibliography
Annex A1. Progress in main structural reforms
Chapter 1. Deleveraging the private sector and overcoming the banking crisis
-The financial crisis needs to be addressed quickly
-The banking crisis requires a comprehensive policy response
-The government has taken steps to strengthen the resilience of the banking sector
-Effective bankruptcy regimes can accelerate loss recognition and strengthen structural change
Bibliography
Chapter 2. Improving employment prospects for young workers
-Labour market challenges
-In the short term, ensure that youth-at-risk remain connected to the labour market
-Reducing the early drop-out rate from education
-Facilitating the transition from school to work through improved vocational education
-Helping the young to move from temporary to stable employment
-Improving firms’ incentives for youth employment through more flexible collective bargaining
-Bibliography