The Spanish economy, while boasting positive growth data in the first quarter and favorable results from the country's big companies, faces long-term challenges that require extensive political consensus.
A massive challenge is to ensure the sustainability of pensions due to the growing deficit caused by the growth of benefit expenditure against contribution income.
Spain needs to attract 25 million immigrants over the next 29 years to meet labor needs and social security contributions due to an ageing population.
The urgent need for a fiscal consolidation plan to reduce the high indebtedness of the state is another significant concern.
Although the growth of the Spanish GDP and employment is positive, it masks a new decline in productivity, which affects the competitiveness of companies and the quality of jobs.
Conclusion: Despite a good short-term economic performance, mid and long-term challenges should not be overlooked. Political leaders are urged to establish dialogue frameworks and focus on these critical challenges.