Infografía Blog IA 2 (Inglés)

DIAGNOSIS

FOCAL POINTS

CHALLENGE

• Review of active and passive labour market policies.
• Flexibility of work conditions.

• Unemployment remains very high.
• Technological and demographic changes are transforming the labour market.
• Employment and productivity must both be improved.

THE LABOUR MARKET

• The population has aged. Ageing is set to gather pace and will be more marked than in other countries.
• Immigration, though high, is not enough to counter this ageing.

• The labour market: longer working lives, continuous training, labour market policies, migration policies.
• The fiscal arena: government spending and the sustainability of pensions.

POPULATION AGEING

• A medium-term fiscal adjustment plan integrated within the new European framework.
• Greater efficiency in spending.
• Comprehensive review of the tax system.
• The sustainability of the pensions system.

• Severe imbalances in public finances, both in historical terms and as compared with other countries.
• Upward trend in spending on pensions, with no prospect of a reversal.

PUBLIC FINANCES

• Inequality has fallen since the pandemic, when it was among the highest of the advanced economies.
• But there are large pockets of vulnerable households, owing to housing affordability.

• A reduction in structural unemployment.
• Housing supply and demand mismatches.
• Equality of opportunity: education, human capital and health.
• Income and transfer policies.

HOUSEHOLD INEQUALITY AND VULNERABILITY

• The strength of demand, together with the relative rigidity of supply, have led to sustained growth in prices.
• Housing to rent or to buy is increasingly hard to come by for certain groups and in certain areas.

• Boosting the supply of housing, with an emphasis on rentals.
• Multiple long-term structural policies.
• Allocation of resources to vulnerable groups.
• Cooperation across tiers of government and collaboration with private initiatives.

THE HOUSING MARKET

• The fight against climate change. Spain is among the most exposed developed countries.
• Transition towards a sustainable economy, with the involvement of all economic agents.

• Environmental policies: taxation, public investment, regulation.
• The energy transition: efficiency, renewables, interconnections with the EU.
• Central banks and the financial system.

THE GREEN TRANSITION