After almost one year of political instability, Spain finally formed a government. Mariano Rajoy – who got the confidence vote ot Chamber of Deputies with simple majority of votes – appointed, last 3 November, the ministers members of his Cabinet. The choice made by the Spanish Prime Minister provides signals of continuity on economic matters. In fact, Luis de Guindos keeps his place as Minister of Economy and adds Industry to his portfolio. Similarly, Cristobal Montoro will continue to lead the Ministry of Finance and Fátima Báñez keeps her position as Minister of Labour and Social Security.

These three ministries will face some of the main challenges that the country will have to deal with in the coming months. First and foremost, the preparation of the budget law for 2017, which will have to merge economic incentives and the reduction of the public deficit, in accordance with what agreed upon in the framework of the EU.

Another topic that cannot be postponed any longer is the pensions that, due to the significant aging of the population, risks not to be sustainable anymore, should the funding system stay unchanged.

Furthermore, the necessity to create stable and quality jobs, in order to reduce unemployment, especially for the youth, is not to be forgotten. In addition to these requests, many others come from the business sector, among which an industrial policy in favour of competitiveness and innovation, more instruments to the internationalization of enterprises and reforms oriented to a digitalization of the economy. With reference to the latter, the creation of a new Ministry that, under the leadership of the new Minister – Alvaro Nadal – assumes competences for energy, tourism and digital agenda was welcomed.


Source: medNews