public sector

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Renfe, Correos, Adif, Paradores… Public Companies Will Continue To Make Losses

As reported by Elena Ramón in the newspaper Expansión, Correos, Adif, Renfe and Paradores are extending their losses for another year. However, all of them assure they will increase revenues next year. The General State Budget for 2022 presented by the Government forecasts that Aena and Enaire will return to profit next year and join Puertos del Estado and Loterías, two entities which are resisting all setbacks. But Renfe, Adif,…


The trouble with the State reform in Spain

MADRID | A frozen fish processing company from Galicia, in the north of Spain, was recently awarded the Green Card by the US’ Food and Drug Administration. The FDA isn’t exactly easy-going, but the Spanish firm has already access to the US market and extensive presence in Europe, including Russia. The news isn’t a surprise, of course: the Spanish food industry is successfully competitive, its exports have risen by 8.4…

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It’s the public sector restructuring, Spain!

Unless the Spanish government tackles the reform of the State administration, it is bound to follow the fate of Greece, Ireland and Portugal. Any positive impact of hints coming from the European Central Bank about lending a hand to maintain the country’s access to the markets will eventually fade away. Indeed, it is happening again. Most analysts in the financial City of Madrid said so in as many words in…

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Growth concerns in Spain will sooner or later re-surface

MADRID | Nobody seems to pay much attention to bad news these days. The stock market shows a bullish bias, recovering from the lows it plunged into driven by fears of utter collapse. Yet, recession has intensified its slide, the second quarter showing a 0,4% GDP decrease. With no prospects of redressing the downturn till the middle of next year, at the best, future outlook doesn’t provide much room for optimism….


Madrid plans to streamline public sector seem merely cosmetic

By Juan Pedro Marín Arrese, in Madrid | Spain’s government has pledged to close down 80 publicly owned enterprises, an impressive figure at face value. But most of the adjustment is grounded on the simple recipe of merging subsidiaries into mother companies. Thus the only tangible savings amount to allowances paid to suppressed Boards of Directors. A negligible €1 million cut off that will add very little in terms of budgetary…

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Don’t blame Spain’s public sector payroll: it’s 6pc smaller than the EU average

Catalan economist Vicenç Navarro delivers view points whose argument sounds completely contrarian at this stage. While austerity may be debated over –at which degree should it be imposed and how quickly, so further spikes in sovereign debt can be avoided?–, the consensus bears little doubt: public investment must be dramatically lowered. It is the right medicine. But confronted with an increasingly stalled productivity and a disquieting unemployment rate, those of…