Front Matter Page
IMF Country Report No. 14/193
SPAIN
SELECTED ISSUES
July 2014
This Selected Issues paper on Spain was prepared by a staff team of the International Monetary Fund. It is based on the information available at the time it was completed on June 20, 2014.
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Front Matter Page
SPAIN
SELECTED ISSUES
June 20, 2014
Approved By
The European Department
Prepared By P. Medas, P. Lopez Murphy, C. DeLong, M. Saiyid, V. Lledo, and Keiko Honjo.
Contents
WHAT IS SPAIN’S SUSTAINABLE GROWTH RATE?
A. Background: Growth and Productivity over Past Decades
B. Potential (or Sustainable) Output Growth Has Declined Sharply in Recent Years
C. International Growth Experience Following Financial Crises
D. Looking Forward: How Much Can Spain Grow over the Medium-to Long-Term?
E. Policy Implications
BOXES
1. Can Spain Grow Without Credit? An Historical Perspective
2. There is Room to Further Liberalize Professional Services
TABLE
1. Path for Potential Output Growth Components
REFERENCES
TACKLING THE CORPORATE DEBT OVERHANG IN SPAIN
A. Background
B. Lessons from Country Experiences
C. Instruments
D. Conclusion
FIGURE
1. Non Financial Corporations Are Deleveraging
ANNEX
1. Feature of Out-of-Court Restructuring Processes
REFERENCES
STRENGTHENING THE INSOLVENCY FRAMEWORK FOR SMES
A. Overview
B. The Spanish Insolvency Regime
BOX
1. Recent Changes to the Spanish Insolvency Regime
SPAIN’S BANKS: BOOM/BUST AND BEYOND—A LONG-TERM PERSPECTIVE OF THE SYSTEM
A. From the End of the Boom to Today
B. Looking ahead
ANNEXES
I. Spanish Banks: A View Through the Crisis, 2007–14
II. Selected Financial Soundness Indicators, 2006–14
A TARGETED CUT IN SOCIAL SECURITY CONTRIBUTIONS IN SPAIN—CAN IT BOOST EMPLOYMENT?
A. The Unemployment Challenge
B. A Targeted Cut in Social Security Contributions Can Help
C. The Scope for a Targeted Cut in Spain
D. Simulating a Targeted Fiscal Devaluation
E. Design and Implementation Issues
BOXES
1. Targeted ESSC Cuts—International Experience
2. Social Security Contributions in Spain: Features and Facts
3. Wage Subsidies in Spain
FIGURES
1. Spain’s Unemployment Challenge
2. Targeted Fiscal Devaluation
3. Fiscal Devaluation vs. Tax Shift
REFERENCES