Arab Today, arab today spain star economist urges reforms to lock in recovery
Last Updated : GMT 17:13:41
Arab Today, arab today
Arab Today, arab today

Spain star economist urges reforms to lock in recovery

Arab Today, arab today

Arab Today, arab today Spain star economist urges reforms to lock in recovery

panish economist and coordinator of the Economic and Social Program for the Spanish political party
Madrid - AFP

Spain must overhaul its labour market and education system and fight cronyism to seal its recovery, an economic expert recruited by a key party in December's general election said Thursday.

With the economy growing again after a double recession, Spain's government is claiming victory over the crisis. But Luis Garicano, a professor at the London School of Economics, told AFP in an interview that deeper reforms are needed.

"The patient has been stabilised but really the long-term recovery has not been achieved at all," he said separately, in a debate in Madrid organised by the Financial Times.

Garicano, 48, was taken on by the centrist party Ciudadanos, a key rival of the governing Popular Party (PP) in the December 20 election, to draw up its economic programme.

Ciudadanos has been drawing voters away from both the PP and the main opposition Socialists and polls show it could play kingmaker in what is expected to be a close-run election.

Prime Minister Mariano Rajoy says his labour reform making it easier for firms to hire and fire workers is partly to thank for hauling Spain out of the crisis.

But the unemployment rate is still extremely high at over 22 percent.

Garicano said a deeper, fairer labour reform was needed.

There is "a very protected core of insiders" and an "extremely unprotected" outer layer of largely young and female workers, he told AFP, switching between English, Spanish and French.

"They don't have prospects of starting a family or getting a house. You can't get a loan if you are on these temporary contracts", or even rent a property.

- 'Single contract' -

Garicano said there are 47 different types of contract in Spain. "You can keep rotating people between different types of contract. The only thing you cannot do is to make them permanent, because the core system is so rigid" that firing them would be too hard, he said.

He wants to eliminate all temporary contracts and proposes a "single contract" system -- a model developed by the French economists Olivier Blanchard and Jean Tirole. In this model, the termination payment increases in line with time spent in the post.

Garicano says the idea has won the backing of another prominent French economist, Thomas Piketty, who serves as an economic adviser to Podemos, Ciudadanos' left-wing Spanish rivals.

"This is important for us in showing that were are not anti-worker," Garicano said.

With the PP and Socialists deadlocked in opinion polls, Ciudadanos has been the only party gaining much support recently, jostling for third place with Podemos.

With voters naming corruption as their second-biggest concern after unemployment, Ciudadanos also wants to clean up Spanish institutions.

Garicano said judges, economic regulators and university rectors were often named based on family, friendships or political ties.

"We want to break those crony networks."

Many of the people appointed to the market and competition regulation commission which supervises all sectors of the economy, from electricity to high-speed trains, "have no experience whatsoever in regulation or competition. Basically they are there to receive orders from the government," he said.

- 'Desire for change in Spain' -

Spain's education system is ranked one of the poorest in Europe by international studies.
Ciudadanos proposes to give schools and universities power to recruit staff and fix their salaries, and to make their funding subject to graduates finding suitable work.

"If a university is generating entire classes of waiters with a law diploma or an economics diploma, then financing should not be the same as for a university which is actually giving these people the skills to succeed," Garicano said.

His ideas were widely scorned when they first appeared in his blog and his 2014 book "The Spanish Dilemma".

Now he reckons they are gaining traction.

"The consensus among Spanish analysts is very broad on the labour market, on productivity, on corruption and on education," he told AFP.

"I feel a real desire for change in Spain.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spain star economist urges reforms to lock in recovery Arab Today, arab today spain star economist urges reforms to lock in recovery

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday