The government seems unwilling to transform the current rent-seeking economy into a freer, dynamic and competitive society

Spain is running out of time

Ángel Martín Oro

After just four months in office, the new Spanish government faces a very difficult situation. The measures implemented by Mariano Rajoy’s administration have not been as effective as hoped. Spain is back in the headlines, becoming the key source of market turbulence in the minds of investors and financial analysts. Worst-case scenarios seem less and less remote.

Official authorities, such as the Finance Minister Luis de Guindos, have given assurances that Spain won’t need to be bailed out. However, financial markets are increasingly doubtful about the country’s capacity to fulfil its debt obligations.

http://www.iea.org.uk/blog/spain-is-running-out-of-time