Since the so called “Greek tragedy” that we are facing a particularly complex juncture for Euro Zone and, most special, for the Spanish economy that had focus the attention of market analyst since its situation is perceived by analyst as one of the more complex in Europe. Therefore, it is fundamental to diagnose accurately the true scale of the challenges that our economy faces, to prepare promptly the tools and policies needed to meet the situation. Moreover, we must act urgently in some key aspects demanded by our responsibilities as members of the monetary union.
Last course, the euro area had to face a crisis of unexpected proportions. As in other regions in other times, this meant large-scale emergency solutions. We consider that euro area is over the worst phase of the recession, but if ambitious supply-side policies are not pursued, recovery will prove particularly slow. First of all, a contention plan is needed in order to fix and prevent future fiscal imbalances that could prevent future fiscal crisis in the financial markets.
Events triggered by the Greek fiscal crisis have forced Spanish economy to accelerate its own consolidation programme. This consolidation programme has to have the support of important reforms in the labour market and the banking restructuring process under way. In short, the recession in Spain is due to the need to absorb and overcome the imbalances that built up during the long expansionary phase. That is a prerequisite if we want to generate a new, solid and sustainable growth path capable to generate employment in the long run.