Rajoy Hasn't Fixed Flaws That Made Spain's Economy So Dangerous
- Spain's productivity has fallen since it joined the euro
- Total debt level almost as high as on the eve of the crisis
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Mariano Rajoy is telling Spaniards they’ll put the economic recovery at risk if he’s pushed out in next week’s election. His critics say the prime minister’s own policies have left the country exposed.
Flaws in the labor market, failures in education and barriers to competition are hurting Spain’s ability to get over the debt legacy of its six-year slump, according to Angel Laborda, chief economist at Madrid-based Funcas, the savings bank foundation. At the same time, a flood of cheap money created by the European Central Bank is increasing the temptation of a consumer-fueled expansion that could generate fresh financial bubbles.