After Austerity. Lessons from the Spanish Experience

Introduction: Following the transition to democracy and the country's European integration, Spain was, prior to the 2008 crisis, a model country. But then the dream was shattered and the country's economy imploded after 2008. How did this happen? Policy choices and the structure of decision making; the role of organized interest; the structure of the state; and institutional degeneration all played an important role in explaining the severity of the economic crisis in Spain; as did the country's membership under an incomplete monetary union. The country is currently (as of 2014) exiting a triple crisis: financial, fiscal and competitiveness. This paper seeks to provide an overview of the country's evolution since the transition to democracy, and to explain its economic collapse after 2008