Economy could reach EU average ‘in seven years’

22 March 2004

MADRID – The new Socialist administration could capitalise on Spain’s economic progress by targeting investment and training, an economic study said Monday.

The study, for the Economistas magazine, examines Spain’s best economic periods and looks ahead at the prospects for the future.

Emilio Ontiveros, director of Madrid’s Professional Economist Association’s publication Economistas, predicts a positive economic outlook for the country if the new socialist government strengthens the foundations of the economy with investment and training.

Manuel Lagares, president of the Association, said that Spain should reach an income level equivalent to 100 percent of the EU average in seven to eight years.

Both economists made these statements at a press conference on the occasion of the publication of the latest issue of ‘Economistas’, which contains a special supplement that analyses the best 20 of the last 50 years of economic history in Spain.

Ontiveros pointed out that in Spain, the construction industry is the only truly active financial sector.

But he said this growth pattern should be modified to include producing goods and services based on investment and training, and improving medium-term competitiveness.

On the issue of labour reforms, Lagares insisted that social costs in Spain are high, and that any adjustments made will have to be considered very carefully.

On the other hand, Ontiveros recognised that collective negotiation is necessary, but it would be better to link remuneration with productivity.

[Copyright with Expatica]

Subject: Spanish news