Artículos

Labour shortages have become an increasingly pressing issue across various sectors and occupations since the COVID-19 pandemic, with significant economic implications. While Spain’s regional public employment services are implementing various initiatives, a more coordinated and sector-specific approach is needed to effectively tackle labour shortages and enhance labour market efficiency.

The European automotive sector is facing a significant decline, with production contracting sharply between 2019 and 2023, placing it behind American and Chinese counterparts. While Spain has managed to mitigate some of these challenges given its relatively stronger position in the European market, the broader industry faces an uncertain future without strategic investment incentives to address a range of structural weaknesses.

On 13 March 2024, the ECB announced a new operational framework to manage its shrinking balance sheet, fundamentally altering its relationship with the banking system and financial markets. The major impact will be felt by 2026-2027 as the Eurosystem’s balance sheet decreases, requiring the ECB to adapt its monetary policy while preserving financial stability.

Spain’s banks are becoming increasingly more international, as shown by the share of total assets commanded by their international business. This strategy of international expansion and geographical diversification has paid off, yielding the benefits associated with both processes for the consolidated groups relative to the domestic banking business.

Interestingly, the banks’ excellent earnings performance over the past two years, in both Spain and Europe, driven mainly by growth in net interest income on the back of high benchmark rates, has not had an adverse impact on asset quality. Within this context, it is worth singling out the prudent provisioning effort being made by the Spanish banks, and the European banks in general, so far this year, recognising considerably more provisions (overlays) than required under applicable accounting standards and banking regulations.