Three of Spain's best-known economists have called for a new government, saying the country is at risk of losing two generations of progress.
Three of Spain's best-known economists have called for a new government, saying the country is at risk of losing two generations of progress. In an op-ed published in Spanish daily El Pais on Friday, Luis Garicano, Tano Santos and Jesus Fernandez Villaverde wrote that reforms taken so far are taking the country in the wrong direction, and not getting at the heart of problems. They warned that while many want to blame the euro, an exit by Spain would be disastrous, with more bank failures, businesses at severe risk and a hugely devalued new currency. It would also turn Spain into that of 50 years ago, a closed economy with low productivity, and more power to lower authorities who would have total control over monopolies, they believe. The economists said Spain needs to change is negotiation strategy with Europe, stop trying to battle the European Central Bank and get a new government that's supported by all parties.