This 2005 edition of OECD's periodic survey of Spain's economy opens with a broad assessment of economic challenges including preserving macroeconomic stability and competitiveness, raising productivity growth and job creation, implementing a response to global warming, and ensuring sound public finances. Chapter 2 examines in more detail the issues of macroeconomic stability and competitiveness, while Chapter 3 concentrates on how to raise productivity growth and job creation. Chapter 4, this issue's special feature, examines how to get the most out of public sector decentralisation. Chapter 5 discusses reforming the public pension system. OECD's policy recommendations are summarised in the Assessments and Recommendations chapter.