OECD economic surveys Spain May 2021

Executive Summary
	The pandemic caused an unprecedented economic recession
	A durable recovery requires boosting employment, while containing medium-term fiscal challenges
	Boosting digital diffusion will raise productivity growth and help firms’ recovery from the crisis
1 Key Policy Insights
	The pandemic has accentuated some persistent structural challenges
	Mitigating the social and economic impact of the pandemic remains a priority
		Spain has been hit hard by the pandemic
		The economic recovery is fraught with high risks
		The crisis has increased financial stability risks
		Policy support should continue, but adapt to the evolution of the pandemic
	Containing medium-term fiscal challenges and supporting employment for a sustainable recovery
		Addressing medium-term fiscal vulnerabilities
			Increasing the effectiveness of the tax system
			Improving public spending efficiency
			Addressing pressures from population ageing
		Boosting employment and job quality
			Active labour market policies
			Collective bargaining and wage adaptability
			Non-standard employment
			Minimum wages
			Female employment
	Making growth more inclusive and greener
		Lowering inequalities
			Minimum income guarantee
			Rent affordability
			Health
			Reform of the teaching profession for higher basic skills
		Making further progress in the fight against corruption
		Making growth greener
	References
		Annex A. Progress on structural reforms
		Annex B. Spanish Recovery, Transformation and Resilience Plan
2 Enhancing digital diffusion for higher productivity in Spain
	Digitalisation offers new opportunities and challenges
		Spanish firms still have significant scope to adopt and use digital technologies
		Insufficient intangible capital and low skills impede taking full advantage of digitalisation
		Policy reforms can boost productivity through digital diffusion
	Ensuring communication infrastructure for all
		The Spanish telecommunication sector performs well
		The digital divide between urban and rural areas should be reduced
		Digital public services are an integral part of the digital transformation
		Cybersecurity underpins the digital transformation of the society
	Enhancing capabilities to make full use of digital technologies
		Intangible capital and innovation to foster digitalisation
			R&D tax incentives
			R&D grants and loans
			Partnerships between public research and business
		Adapting skills of workers to digitalisation and changing nature of work
			ICT in formal education
				Primary and secondary education
				Universities
				Vocational education and training
			Lifelong learning and ICT
	Sharpening incentives to take advantage of digital technologies
		Market regulation should be revamped further to generate competitive pressures
		Insolvency regimes could be reformed further to encourage risk taking activities
		Access to capital is key to diffusion of technologies
			Equity Financing
			Venture Capital
	References