Spain

COVID-19 is testing the Basque Country’s (Spain) resilience. Before COVID-19, employment indicators were recovering from the 2008 crisis, while automation of production was underway. Job quality remained low despite rising educational attainment in the region. COVID-19 is likely to accelerate structural changes in the labour market, including automation and digitalisation. Firms may increasingly look to technology as a way to pandemic proof their operations, while individuals may develop preferences for automated services as opposed to face to face contact. This OECD report sheds light on the potential impacts of automation on the Basque labour market, including which types of jobs and groups of workers are most likely to be impacted, in light of COVID-19 and other labour market changes. The report also highlights the critical role to be played by employment services, training policies and social dialogue to help people and firms make labour market transitions while upholding social cohesion. The report delves into how the Basque Country’s employment and skills system can continue to be at the front line as the crisis evolves.

The COVID-19 crisis has had a profound impact on SME access to finance. In particular, the sudden drop in revenues created acute liquidity shortages, threatening the survival of many viable businesses. The report documents an increase in demand for bank lending in the first half of 2020, and a steady supply of credit thanks to government interventions. On the other hand, other sources of finance declined, in particular early-stage equity. This paper, a special edition of Financing SMEs and Entrepreneurs, focuses on the impacts of COVID-19 on SME access to finance, along with government policy responses. It reveals that the pre-crisis financing environment was broadly favourable for SMEs and entrepreneurs, who benefited from low interest rates, loose credit standards and an increasingly diverse offer of financing instruments. It documents the unprecedented scope and scale of the policy responses undertaken by governments world-wide, and details their key characteristics, and outlines the principal issues and policy challenges for the next phases of the pandemic, such as the over-indebtedness of SMEs and the need to continue to foster a diverse range of financing instruments for SMEs.

This paper explores the linkages between regional strategies for the social economy and regional development in four EU countries: France, Spain, Sweden and Poland. It provides a comparative perspective of regional strategies for the social economy (Section 1), based on i) the level of recognition of the social economy itself, ii) multi-level governance arrangements, iii) the regional strategic priority given to the social economy and iv) financial resources available for regional strategies. It gives examples of strategies for the social economy in selected regions in the four countries to document the diversity of practice (Section 2). It outlines conclusions and policy orientations (Section 3) to help reinforce the positive impact of regional strategies for the social economy on regional development.

The design of intergovernmental fiscal relations can help to ensure that tax and spending powers are assigned in a way to promote sustainable and inclusive economic growth. Decentralisation can enable sub-central governments to provide better public services for households and firms, while it can also make intergovernmental frameworks more complex, harming equity. The challenges of fiscal federalism are multi-faceted and involve difficult trade-offs. This synthesis paper consolidates much of the OECD’s work on fiscal federalism over the past 15 years, with a particular focus on OECD Economic Surveys. The paper identifies a range of good practices on the design of country policies and institutions related strengthening fiscal capacity delineating responsibilities across evels of government and improving intergovernmental co-ordination.

The transition to the circular economy for the city of Valladolid, Spain represents an opportunity for greater attractiveness and competitiveness, while providing responses to environmental challenges. The city of Valladolid aims to be a reference as a sustainable city, reducing waste, lowering the use of raw materials and increasing the use of renewable energy while stimulating economic growth and social well-being. This report aims to support Valladolid in developing a coherent circular economy strategy, on the basis of various initiatives already in place to finance circular economy projects, raise awareness and promote an entrepreneurial culture on the circular economy.

In Barcelona, the rate of foreign residents has quintupled since 2000, and in 2017, 23% of the population was foreign-born. From the late 1990s until today, the municipality has followed an intercultural strategy to implement inclusive measures for local migrant integration. These measures have been recently reinforced to welcome asylum seekers who tripled between 2015 and 2017. For this group, the municipality set up targeted housing and reception policies that complement the national reception system. Migrants have access to municipal measures in key sectors such as housing, minimum living allowances and labour market integration - by the employment service Barcelona Activa - on the same basis as the other residents. Further, Barcelona has developed sensitization initiatives to curb discrimination and improve service delivery in the most disadvantaged neighbourhoods. The municipality has developed local coordination mechanisms with migrant associations and non-governmental organisations that aim to share information, avoid duplication and maximise the access to services such as language classes for migrants. Yet, migrants are particularly affected by socio-economic inequalities particularly following the economic crisis. This report sheds light on how the municipality and non-state partners work together with the other levels of government for sustainable migrant and refugee integration.

Spain’s economy is showing clear signs of recovery, after a protracted recession. Despite these positive developments significant challenges remain. Spain has amongst the highest unemployment rates in the OECD and the Spanish economy was still smaller in 2014 than it was in 2007. While the future is by definition uncertain, all signs point to a world in which higher levels of skills will be increasingly critical for people’s success in the economy and society. Skills improvements are an important driver of employment, productivity, economic growth, and higher living standards. Fostering better and more equitable skills outcomes also provides the foundation for building a healthier, more equitable, and more cohesive society. The OECD Skills Strategy Diagnostic Report: Spain identifies 12 skills challenges for Spain. These challenges were identified through workshops with national and regional governments and stakeholders and through analysis of OECD, European Commission and national data. The first eight challenges refer to specific outcomes across the three pillars of developing, activating and using skills. The next four challenges refer to the 'enabling' conditions that strengthen the overall skills system. Success in tackling these skills challenges will boost performance across the whole skills system.