A New Course for Spain: Beyond the Crisis
William Chislett. Elcano Royal Institute, 2016.
The global financial crisis of 2007-08 took a heavy toll on Spain’s vulnerable economy. The spectacular collapse of the real estate and construction sectors caused the unemployment rate to skyrocket to 27% in 2013. This shook the country’s economic, political, institutional and social foundations. There is now a glimmer of light in what has been a very long tunnel, thanks to some of the measures taken, the innate strengths of the country, particularly the extended family-based network, and the common sense of its people.
This book seeks to explain how Spain moved from crisis to incipient recovery by looking at the reforms and the main sectors –macroeconomic fundamentals, exports, banking, investment abroad, foreign direct investment in Spain, etc–. It also looks at the challenges ahead including the new political situation with the erosion of the two-party system –the Popular Party and the Socialists– that has alternated in power since 1982 and the emergence of two new parties, the anti-austerity Podemos and centrist Ciudadanos.