The labour laws have made it increasingly difficult for staff to earn more cash. | LUIS TEJIDO

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If you believe the International Monetary Fund and the Spanish government then Spain is enjoying an economic miracle and is the rising star of the European Union. The Spanish economy is out-performing the rest of Europe. But I don’t agree and in my humble opinion Spain has got economic problems which somehow are being shielded. The much mentioned lack of housing is one of the biggest problems, with high rents eating into people’s salaries.

Banks are not lending money to the same degree as ten years ago, making it impossible to get on the property ladder. High taxes are hitting small firms hard and the increase in the minimum wage and talk of a four-day working week is making this problem even worse. Inflation has meant that there is little extra cash and thousands if not millions of people are living close to the breadline in Spain.

Many companies have to live with a government-enforced ban on overtime even though many of their staff are prepared to work more hours for additional cash. The labour laws have made it increasingly difficult for staff to earn more cash. Taking all this into account and if the Spanish economy is still growing then Spain has indeed pulled off an economic miracle. As economists say it is very difficult to grow an economy if taxes are high.