Causes and Effects
Studies in Fiscal Federalism and State-local Finance series
Edited by Ehtisham Ahmad, Massimo Bordignon and Giorgio Brosio
Chapter 8: Multi-level finance and governance in Spain: the impact of the Euro crisis
The recent economic crisis provoked in Spain a fiscal crunch without any precedent in recent history, with public deficits of around 10 percent of GDP over several years and a public debt approaching 100 percent. Although economic prospects are currently improving, the situation in public finances at different levels of government is going to be challenging in the coming years. The main causes of this situation are external to the country, and related to the availability of ‘low-cost’ credit during the boom years and to the effects of the international financial crisis. However, some authors suggest that internal factors also played a role: the poor quality of institutions made it more difficult to provide an appropriate and speedy response to the housing bubble once the crisis appeared (e.g., Fernández-Villaverde et al., 2013). Santos (2014) provides a description of the role of government in dealing with the crisis of Spanish savings banks. And Solé-Ollé and Viladecans-Marsal (2013) examine the role of regional and local land-use policies in fuelling the housing bubble.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.