Spain’s record according to Wolfang Schaüble: homework done

This is not the first time during the crisis we hear from some European authority that Spain is “doing well”, that the country is “in the right track” or “doing its homework”. Now it’s Wolfang Schäuble, Economy Minister in Angela Merkel’s cabinet, who has affirmed that “the results and figures of Spanish reforms are impressive.”

Under this formal praising, Schäuble explained in an interview for the Spanish newspaper ABC that “Spain has a strong economy, has also reduced its labor costs, increased significantly its exports rate, and made a good work in reorganizing its financial sector, even after the troika’s review.” The German Minister added that “financial markets recognize that successful policy.”

Schäuble admitted that Spain went through a difficult time during the reorganization of part of its banking industry, since the State capital needs could not be financed at reasonable conditions. In Schäuble’s opinion, that was the only reason why Spain was forced to demand help from the European Financial Stability Facility (EFSF) to recapitalize its financial entities. “Otherwise, Spain would have never needed to ask for the rescue,” he said.

Schäuble’s estimations on whether the Spanish economy will recover the growth path in 2014 are cautious. He does not fix any specific date, but points out that “the remarkable improvement” of the country’s economic data “is the ground for a higher growth, especially sustainable.”

On the other hand, Merkel’s Economic Minister does not ignore Spain’s unemployment drama. “Now we have to fight jointly against unemployment, which is a common European problem, including the unacceptable figures affecting young people. We are doing everything possible by means of the adequate mechanisms to reduce those numbers as soon as possible”.