From the rhetoric of competitiveness to that of supervised economy: The political economy in Zapatero’s second term of government (2008–2011)

Abstract

This is not our first commentary on the economic policy of a government at the end of its legislature. This last term ending in November of 2011 has continued in the same vein as previous ones, as well as showing a persistent decline in the Government’s expectations to propose an acceptable economic policy in its last term in power. Spain has experienced the supervision of its economy, although it has not had to undergo external intervention. Certainly, the economic policy of a State belonging to the Euro zone is very limited due to the sovereignty it has ceded; on the other hand, an economy like Spain’s, which is very open in its dealings abroad, has more difficulties implementing a vigorous, autonomous policy. The agenda of the new Government will undoubtedly include the administration of last summer’s constitutional reform which has made a priority of the policy of budgetary stability, but which cannot become a pretext for unsettling the constitutional economic system. This balance will not only demand a renewed constitutional consensus, but will also demand new economic governance in a global context. Our editorial places its best bet hereupon.