The Spanish Economy in the 1990s

The Spanish Economy in the 1990s

The Spanish Economy in the 1990s

The Spanish Economy in the 1990s

Synopsis

This volume provides a detailed assessment of the performance of the Spanish economy in the 1990s. which places this impressive growth in context and examines Spain's future prospects of successfully qualifying for European EMU.

Excerpt

The Spanish economy and society are at a historic moment in time, when an opportunity to achieve two major objectives has been presented—to take advantage of the economic recovery which will create a great deal of employment, and to achieve the integration of Spain into the Economic and Monetary Union within the time limit established by the European Union.

The economic policy is directed at significantly reducing unemployment. It includes, unavoidably, a higher rate of growth. However, the real challenge is not only to achieve a higher rate of growth, but also to assure the maintenance of the growth process. This implies that economic policy must achieve two complementary objectives. On the one hand, it is necessary to create a stable macroeconomic environment, but on the other hand, it is essential to adopt a structured programme of measures, which is aimed at increasing the productive capacity of the economy.

A stable macroeconomic environment is imperative for sustained growth and employment creation. This path will help Spain establish itself among the most prosperous group of countries. This will also lead to European Monetary Union and complete a process that started almost forty years ago with the Treaty of Rome.

The Government Budget for 1997 clearly reflects a new direction in economic policy, which contributes to the Spanish economy's modernisation. Freezing public spending where possible, coupled with a significant reduction in the public deficit, implies that fiscal pressure will not be increased. This is the clearest indication of the Government's desire to improve its credibility substantially and increase the agents' social well-being and economic confidence.

In this sense, the 1997 Budget will decrease interest rates and lead to a recovery in investments and employment in the economy. the reduction in interest rates facilitated the reduction in the interest differential, which exists in relation to our Community partners. This not only reduces the interest burden of the State, but also speeds up the flow of investment and protects the recovery in consumer expenditure.

The Government Budget for 1997 is supposedly a step forward in the . . .

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