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Options for a Sustainable Long-Term Growth Path in Spain

This report analyses the Spanish government’s current fiscal predicament, examines some of the measures it has taken in response, and considers what will be required to successfully manage this debt burden. While Spain’s debt burden accumulated quickly, the time horizon for reducing it can be much longer. The Conference Board has devised a simple framework for simulating the evolution of the debt-to GDP ratio that demonstrates how sustained improvements in labor productivity performance and steadily putting the unemployed back to work will place Spain’s debt burden on a sustainable path over the long term.

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