Main Challenges

• Spain was in an economic recession from 2008 to 2013 and this, combined with significant cuts in government expenditure, resulted in poor policy outcomes.
• Spain still faces several challenges on the sustainability of its policy performance and the legitimacy of its political system.
• **The main strategic challenges for the future economic performance of Spain are still domestic – both on the fiscal front and, above all, in its capacity to create jobs.**
• Evidence suggests that the current Spanish education and R&D systems are hindering the move toward a more knowledge-based economy.
• The ageing population is another major challenge. The average Spaniard today lives 81.6 years, the birth rate is extremely low (1.3) and forecasts suggest that one-third of Spain’s population will be age 64 or over by 2050 (the proportion was 17.4% in 2012).

http://www.sgi-network.org/2014/Spain/Key_Challenges