- The final evaluation report highlights the good execution of the program and Spain's commitment to banking reform
- The Commission notes that European aid has had positive effects for the consolidation of the economic recovery
- The financial sector has recovered its credit activity, at the same time that it has improved its efficiency and solvency
The European Commission has published the evaluation report of the Spanish Financial Sector Assistance Program, carried out between 2012-2014. The report highlights the success of the measures put in place and the strong commitment of the Spanish authorities in their execution. The objective of the report is to evaluate the program in terms of effectiveness, efficiency and coherence, in order to draw lessons for future programs of the European Union.
The Commission highlights that the objectives pursued have been achieved and other risks that would have had negative consequences for banks and the Spanish economy as a whole have been avoided. The analyzed indicators show a clear improvement in terms of solvency, profitability and financing costs of the financial system, while credit flows to the real economy have recovered.
The evaluators also point out that it was wise to focus the program and its conditionality on the financial sector and avoid the inclusion of measures related to fiscal policy and structural reforms. Likewise, the report points out that the implementation of the measures contained in the Memorandum of Understanding (MoU) by the Spanish authorities was quick and effective, with most of the reforms being undertaken in 2012. This allowed confidence to be restored in the Spanish economy. and in your financial system, from the first moment of the program.
The document also highlights the commitment of the Government of Spain to meet fiscal objectives and the adoption of structural reforms in parallel with the financial assistance program, which has fostered a virtuous circle of the economy, with job creation and economic growth. The reforms implemented allowed to regain the confidence of investors in Spain and in the authorities' ability to correct macroeconomic imbalances.
The Spanish authorities generally share the conclusions of the report and appreciate the European Commission's recognition of the Government's commitment and effort in this program.
Spain applied for the financial assistance program in June 2012, endowed with a credit line of up to 100,000 million euros under very advantageous conditions, with the aim of carrying out the consolidation and restructuring of the Spanish financial system. Of these funds, a little more than 40,000 million were finally required, of which more than 5,600 million have already been returned to the European Stability Mechanism (ESM), about 15% of the total.