|
This Fifth Review report provides an assessment of the progress made by Spain with respect to its Financial Assistance Programme for the Recapitalisation of Financial Institutions, based on the findings of a joint European Commission (EC)/European Central Bank (ECB) mission to Madrid during 2-13 December, 2013. The mission considers that the positive assessment of steadfast programme implementation that formed the basis of the Eurogroup statement of 14 November has been maintained through the final review. Spain has pulled back from severe problems in some parts of its banking sector, thanks to its reform and policy actions, with the support of the euro area and broader European initiatives. Nevertheless, the reform agenda of the financial sector needs to continue beyond the finalisation of the programme.
Key findings:
The broader economic environment has continued to weigh on the banking sector, even if that impact has recently been receding.
The reform agenda of the financial sector needs to continue in order to consolidate the progress in stabilisation.
Fiscal consolidation and structural reforms need to advance further.
With the Programme coming to an end in January 2014, the EC, in liaison with the ECB, where indicated, will continue monitoring Spain´s financial sector and the broader economy.
As VP Rehn said on 22.1.14: “The programme has achieved its twin objectives of repairing and reforming the Spanish financial sector, and in so doing, helping to create a sound basis for the economic recovery. These efforts have been carried out alongside major structural reforms aimed at restoring competitiveness, and significant fiscal consolidation to ensure the sustainability of public finances.”
See also: Spanish finance minister pitches a "country on the mend" scenario to MEPs