Continue reforms to make growth work for all in Spain

Pedro Sánchez 2018

Mr Pedro SANCHEZ, Spanish Prime Minister. Copyright: European Union Event: European Council – June 2018 (Day 2)

This article is brought to you in association with OECD.


Spain has made a successful economic recovery, underpinned by strong employment growth, gains in competitiveness and favourable external and financial conditions. The current economic expansion offers an opportunity to speed up efforts to increase the resilience of public finances, enhance job creation and ensure a more sustainable and inclusive economy that benefits all Spaniards, according to a new report from the OECD.

The latest OECD Economic Survey of Spain looks at the multiple factors behind the recovery, as well as the challenges facing the country moving forward. The Survey projects growth of 2.6% this year, 2.2% in 2019 and 1.9% in 2020, and lays out an agenda for making the economy more inclusive and enabling further expansion.

The Survey, presented in Madrid by OECD Secretary-General Angel Gurría and Nadia Calviño, Spain’s Minister of Economy and Enterprise, highlights sizeable risks to the global outlook, particularly as concerns slowing global trade growth, which could undermine exports and job creation.

“The Spanish economy has shown impressive performance, becoming more competitive and growing faster than most of its euro area peers,” Mr Gurría said. “The challenge going forward is ensuring that growth is more inclusive and benefits everyone, while at the same time maintaining financial stability and fiscal sustainability.

“Further efforts are needed to ensure that the fruits of economic recovery are shared more widely and no one is left behind. The falling but still high levels of unemployment are a lasting legacy of the crisis, which will require a stronger focus on achieving greater convergence among regions as well as new policies to improve educational outcomes, boost skills, adapt to the needs of the digital economy, and create high quality jobs,” Mr Gurría said.

The Survey points out a range of regional disparities across Spain, with wide variation in income inequality, poverty, labour market and educational outcomes across regions. It also highlights low levels of intra-regional migration as a driver of regional inequalities in income and well-being. Together with barriers to achieving a truly single market, these differences require policies for more unified labour and product markets.

To tackle the challenges posed by regional disparities, the Survey proposes Spain increase spending on training and job search assistance, while removing current barriers to competition between training centres across regions. Ensuring full portability of social and housing benefits across regions, through the provision of temporary assistance by the region of origin or the central government, would improve labour mobility.

Introducing a single point of contact for employment and social services to provide integrated support for jobseekers would improve coordination and information sharing, while targeting existing financial incentives for lifelong learning to low-qualified workers would improve employment opportunities and incomes.

More effective use of taxes and transfer policies could lower inequality, the Survey said. Providing individualised support to students at the risk of failing at an early stage has successfully contributed to lower early school leaving rates in some regions, and could be extended nationwide.

Policies to further improve competition and innovation will be key to boosting productivity growth and reducing regional disparities, the Survey said.

Eliminating existing regulations based on firm size and strengthening implementation of the Market Unity Law – which seeks to ensure that firms are not subject to any additional requirements in other regions than their own – is essential. Coordinating regional and national innovation support programmes and greater use of ex-post evaluation and performance-based funding could also improve innovation outcomes, the Survey said.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

What’s the latest on coronavirus antibody tests?

Remembering Kofi Annan

Female leaders warn about the erosion of women’s rights

Yemen: Escalation in fighting must stop ‘before it’s too late’, Griffiths tells Security Council

Romania: MEPs are deeply concerned about judicial independence and rule of law

Zuckerberg, a paella, and the mighty EU questionnaires that would stop Whatsapp acquisition by Facebook?

UN cultural agency removes birthplace of Jesus from its list of heritage sites in danger

How the massive plan to deliver the COVID-19 vaccine could make history – and leverage blockchain like never before

EU tourism industry expects a new record year in 2014

Youth leaders share positive visions of the future, as Guterres launches UN75 in New York

Apple Vs. EU: Will the US tech giant ever pay for taking advantage of Ireland’s taxation?

COVID-19 lessons learned: stronger role for EU medicines regulator

Mergers: Commission prohibits Siemens’ proposed acquisition of Alstom

A Sting Exclusive: “There can be no global deal on emissions without China and the USA”, Conservative MEP Ian Duncan stresses from Brussels

UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’

This is the state of the world’s health, in numbers

Peru is building a new international airport near Machu Picchu – and archaeologists are worried

The new ethical dilemmas in medicine of the 21st century

Commission extends transparency and authorisation mechanism for exports of COVID-19 vaccines

Is the world living up to its climate commitments?

A Sting Exclusive: “Asia-Pacific response to COVID-19 and climate emergency must build a resilient and sustainable future”, by the United Nations Under-Secretary-General

Fed, ECB take positions to face the next global financial crisis; the Brits uncovered

The gender gap in medicine: why must it be closed?

Trump: Hostile to Europe, voids Tillerson’s “ironclad” ally pledge

Eurozone in trouble after Nicosia’s ‘no’

The future of energy is being shaped in Asia

Vaccine against Ebola: Commission grants first-ever market authorisation

Five ways individuals can help save the oceans

Why remote working doesn’t have to mean alienated employees

3 principles to reinforce digital trust in supply chains

Food safety critical to development and ending poverty: FAO deputy chief

Commission welcomes political support by Member States to improve the protection of bees

UN panel to rally global political will to tackle internal displacement crisis

Deal on digitalisation of access to justice will benefit citizens

How the digital finance revolution can drive sustainable development

Commission Vice-President Rehn exaggerates Eurozone’s growth prospects

This NASA-inspired technology converts carbon dioxide into food. Here’s how

How cities, not states, can solve the world’s biggest problems

How to stop plastic pollution at source

Working fewer hours makes you more efficient. Here’s the proof

Mexico cannot move forward ‘without addressing the shadows of the past’, says UN rights chief

Rule of law: MEPs travel to Malta to meet with government, NGOs and journalists

Tsipras imposes more austerity on insolvent Greece; plans to win new early election soon

Coronavirus: here’s what you need to know about face masks

A critical European young voice on Net Neutrality: the distance between Brussels and Washington

How to build public trust in a sustainable energy future

Syria: Urgent, concrete actions needed, to protect children too young to ‘make sense of this senseless war’

Universal Health Coverage in the EU: Are we really leaving no one behind?

This Japanese experiment shows how easily coronavirus can spread – and what you can do about it

This start-up is recycling abandoned wooden homes in Baltimore

Conflict prevention, mediation: among ‘most important tools’ to reduce human suffering, Guterres tells Security Council

A European student just sets the question of the day: What kind of education policies are missing in Europe?

MEPs approve new CO2 emissions limits for trucks

Combat against devastating effects of tobacco can only be won ‘if the UN stands united’ – UN health official

State aid: Commission approves €2.5 billion Italian scheme to support self-employed and healthcare professionals in context of coronavirus outbreak

Sudan Prime Minister survives attempted assassination

Yemen war: UN-backed talks to silence the guns due to begin in Stockholm

As Libya talks resume in Geneva, UN negotiator seeks to overcome sticking points

The health of the human being in coexistence with a transformative biosphere

This disability activist says we must offer dignity and financial inclusion rather than just braille and ramps

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s