Publication

The constitutional reform agreed by the Spanish Parliament on 7 September 2011 aims to mitigate concerns over public finances by constraining the general government’s spending and borrowing capacity. In their analysis of this historic agreement, the authors find that the reform represents a major step forward, but that it must be integrated within a more ambitious program of structural reforms, with special emphasis on areas such as the labor market and the tax system, before there can be any real prospect of resuscitating the Spanish economy.