Sovereign debt is not Europe's only problem. Spain faces a lack of competitiveness and the country needs to put a priority on encouraging part-time work to mitigate the negative effects of the crisis, says Prof. Morten Olsen of IESE's Department of Economics.
Since the crisis started, Spain has seen an exodus of 1.3 million workers from the construction sector alone, while the average duration of unemployment continues to grow. Just 13 percent of Spain's workers are part-time, a very low figure when compared with the Netherlands (40 percent) or Germany (22 percent). To encourage part-time work, however, the country's social security system will have to change.