According to the EC, "Spain is experiencing macroeconomic imbalances which require specific monitoring and decisive policy action. In several dimensions, the adjustment of the imbalances identified last year as excessive has clearly advanced and the return to positive growth has reduced risks".
Good news! But, at what price?
As I wrote in previous posts (here, and here), the spanish way to emerge from crisis, you know, is reducing wages to boost competitiveness (...all this without forgetting the cuts in our welfare system, and the unbearable tax burden).
A new way: Ok, do not reduce wages, reduce labour costs for enterprises. But seriously, please. We don't need patches*. Fortunately, many experts think as I do.
TO BE CONTINUED...
*Patch: Employers will have to pay only a flat fee of €100 a month for each permanent hire in the first two years. That would replace the current system, in which employers make contributions that vary with workers’ earnings.