14 November 2013

Statement by the Eurogroup on Spain

We congratulated Spain on the successful implementation of its financial sector programme and the ambitious reform steps undertaken thus far. This is also confirmed b the assessment of the !ommission" in liaison #ith the $!% on the fourth revie# that #e discussed toda as #ell as the independent assessment of the &'(. &n this respect #e also look for#ard to the completion of the fifth and final revie#" #hich should confirm this positive assessment. We are full supportive of Spain)s decision not to re*uest an successor $S' financial assistance follo#ing the programme e+it in ,anuar 2014. This is based on the fact that the $S' financial assistance and reform programme has proven to be successful in addressing financial sector vulnerabilities. The overall situation of the Spanish banking sector has significantl improved" including the access to funding markets of Spanish banks. &n this respect" #e also #elcome the encouraging results of the recent for#ard-looking evaluation of the solvenc of Spanish banks b the %anco de $spa.a. The process of bank restructuring is #ell under#a and the burden-sharing e+ercise has been completed. We also noted #ith satisfaction that the regulator and supervisor frame#ork of the Spanish banking sector has been significantl strengthened" #hich translates into higher shock resilience of the banking sector. Spain is making significant advances in its ambitious structural reform agenda" broadl in line #ith its !ountr Specific /ecommendations. 0rogress has been made in budgetar consolidation and macroeconomic imbalances have diminished. We #elcomed that these achievements have started to be reflected in the recent economic figures" #hich sho# that the Spanish econom returned to positive gro#th" as #ell as positive financial market developments" sho#ing improved market confidence. We call on the Spanish authorities to rigorousl continue the reform momentum to address an remaining challenges regarding the economic and fiscal situation" including the high unemplo ment rate and the vulnerabilities stemming from the still high private and e+ternal debt. Spain is a living e+ample that $1-&'( ad2ustment programmes are successful provided there is a strong o#nership and genuine commitment to reforms. We commend the Spanish people for their efforts and achievements under difficult circumstances. The success of the Spanish financial assistance programme also clearl illustrates our resolve to #ork together to ensure the cohesion and stabilit of the euro area.