Arab Today, arab today spain star economist urges reforms to lock in recovery
Last Updated : GMT 05:49:56
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.

arabstoday
arabstoday

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

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 France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
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