Spain’s economic recovery receives backing from the European Commission

José Manuel Barroso saved some praise for Spain's recent flickers of recovery

The emergent economic recovery in Spain brings renewed confidence to the rest of the eurozone, according to José Manuel Barroso – the President of the European Commission.

Barroso, who was addressing the Commission during his recent State of the Union 2013 address, was buoyant and upbeat, stating that a Europe-wide economic recovery was within sight but warned that there was still plenty of work to do…

Spain was sounded out for particular praise, with Barroso keen to point out that the country’s surging export market – which now accounts for 33 per cent of gross domestic product (GDP) – was “a signal of the very important reforms and increased competitiveness” the country had introduced.

“The most vulnerable countries are paying less to borrow,” Barroso added, noting that ‘people’s life savings are safe’ and that the continent had fought back gallantly from the five-year-long crisis.

However, amid the bullish tone, Barroso sounded a warning that the hard work is still to come if Europe – and Spain in particular – wants to start creating jobs and opportunities for its people.

Specifically, structural and legal reforms must be implemented more swiftly, Barroso said, pointing to the EU’s Country Specific Recommendations document as an ideal template to follow. For Spain, this means bringing its budget deficit to below three per cent of GDP – easier said than done, but an achievable target nonetheless.

Barroso also called for a Europe-wide banking union in order to protect taxpayers from the frontline of potential collapse and failure, while he also backed more support for small and medium-sized enterprises.

“I know some people out there will say Europe is to blame for the crisis and the hardship,” he concluded. “But we can remind people that Europe was not at the origin of this crisis. It resulted from mismanagement in the past and irresponsible behaviour in financial markets.”

Which did, of course, happen in Europe too, but the tone was refreshingly positive… and it’s been a while since anybody has been able to say that.