Madrid will have to rely heavily on other forms of European help to plug the deficit. It has already applied to the EU programme to support labour markets, and it will be among the chief beneficiaries of the European Commission’s new “recovery and resilience facility” agreed in mid-July.
AFTER the eurozone crisis, Spain emerged as a sort of model for how the monetary union’s more fragile nations might prosper. The economy expanded steadily as tight labour laws were loosened, and investors flocked to Madrid, pushing its government bond yields well below Italy’s.
Subsequently, Spain strengthened its political clout in the European Union, challenging Italy’s position as the third-most influential member state after France and Germany. As Rome’s fortunes waned, Madrid’s waxed.
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