Thus, before the summer, the restructuring of the banking system should be complete, save for a legal reform allowing savings banks to obtain high-quality capital on the market, to meet the new Basel standards. The government has the agreement of Spain’s main opposition party for the successful passage of this legal reform through Parliament. The restructuring and reform of the financial system, along with the budgetary adjustment, the public pension reform and the labour market reform, are the most urgent measures needed to restore confidence in the Spanish economy, and, as such, should be passed before the summer recess. But the process must not stop there, as further measures are needed to stimulate the recovery in growth and the modernisation of the Spanish economy. Vital tasks remain, such as: educational reform; the modernisation of general government and the removal of overlaps between the different tiers of government; guiding investment in infrastructure towards projects that enhance the competitiveness of Spanish firms; privatising or streamlining public corporations; increasing competition in network industries and particularly in energy; promoting collective bargaining agreements in the private sector that raise the competitiveness of the Spanish economy and thus create employment, etc. And not only at national or central government level, but also among regional and local governments, trade unions, employers’ associations and other economic and social agents. At this point in time, we must all face up to our responsibilities, with the corresponding costs and sacrifices.
We must, moreover, act with the urgency demanded by our responsibilities as active members of the common European project in defence of stability and the success of this project. The report I present today is specifically geared to contribute to this task. From spring last year, the economic indicators offered signs that the world economy was emerging from the most critical phase of the gravest real and financial crisis since the Great Depression. Progress since along the path to recovery has been much more evident in the emerging economies, for which the latest projections indicate growth rates above 6% for 2010. By contrast, the developed countries’ economies are recovering at a considerably less dynamic rate, of around 2%. This turnaround confirms that the rapid and energetic economic policy action to support financial systems, to stimulate demand and to sustain confidence was pivotal in halting a spiral of recession and financial instability which, had it continued, would have undoubtedly had disastrous consequences for the world economy. Halting this recessionary spiral was crucial for placing the world economy once again on a path of sustained output and employment growth. But if the incipient recovery – still subject to considerable uncertainty and risks – is to take root, further measures on various fronts will be needed. The bulk of the measures adopted to check the accelerated economic and financial downturn were exceptional. Accordingly, they have to be withdrawn.