Staff has provided useful insights in a context where the authorities are developing a new economic strategy. On behalf of the Spanish authorities, we thank staff for its very constructive dialogue and its well-focused analysis. The new government that took office last June is pursuing an economic policy agenda articulated around three main pillars: fiscal discipline, social inclusion, and sustainable growth. The Art. IV usefully focuses on these areas. There is broad agreement with the staff on the diagnosis and on key policy objectives, such as ensuring fiscal discipline and rebuilding fiscal buffers, lowering inequality, or fostering a structural reform agenda. The authorities have different views on some policy recommendations, particularly in the area of labor market reform.