The indebtedness of the Spanish economy:
A burden on the recovery

Objectives

After the severe economic crisis of recent years, the Spanish economy begins to show signs of recovery, presenting a weak economic growth. We still face threats, particularly the high level of debt of companies, households and the public sector. This is precisely the objective of this Workshop: to analyze the indebtedness and financial vulnerability of the Spanish economy.

The Workshop is organized in three sessions devoted to the analysis of the implications of the indebtedness of firms, households and the public sector, respectively. The analysis presented combines different methodological perspectives. Firstly, the analysis of the private sector of the economy is based on the observation of large amount of firms and households, which allows to assess that although the indebtedness of the economy has macroeconomic implications, it has strong microeconomic roots. In the case of the public sector, the aim is to study the conditions to achieve a sustainable path in the public sector finances. A common feature of all the contributions is that the Spanish case is contextualized in the international context. By means of the comparison with other countries, the particularities of the Spanish firms, household and the public sector emerge.

The speakers are from national and internationally recognized institutions, belonging to the IMF, the ECB, the Bank of Spain, BBVA Research and Spanish universities.

The Workshop is aimed to the public at large, scholars, professionals or policy makers interested in the current financial situation of the Spanish economy and the necessity of an ordered deleveraging which do not hinder the incipient economic recovery.

Programme

9:15 Welcome and opening session

9:30 - 11:15 Session I. Indebtedness and firm vulnerability

“Indebtedness and vulnerability of the Spanish corporations: the impact of the crisis”
Joaquín Maudos and Juan Fernández de Guevara, Universitat de València and Ivie

“The leverage of Spanish corporations from National Accounts”
Vicente Salas, Universidad de Zaragoza

“The legacy of high indebtedness levels on investment in the euro area”
Diego Rodríguez, European Central Bank

11:15 - 11:45 Coffee break

11:45 - 12:30 Session II. Household indebtedness

“The distribution of debt across euro area countries: the role of individual characteristics, institutions and credit conditions”
Olympia Bover, Banco de España

12:30 - 13:45 Session III. Public finances: sustainability of the public debt

“Debt Sustainability and the Long-run Challenges of the Public Sector”
Rafael Doménech, BBVA Research and Universitat de València

“Managing public debt at a time of slow growth”
Paulo Medas, International Monetary Fund

13:45 Closing session

Coordinator

Joaquín Maudos, Professor of Economics at the Universitat de València, Researcher at the Ivie and collaborator of the CUNEF

Participants

Olympia Bover, Economist at the Research Division of the Banco de España. Head of the Unit of Microeconomic Information and Analysis
Rafael Doménech, Chief Economist for Developed Economies of BBVA Research and Professor of Economics at the Universitat de València
Juan Fernández de Guevara, Assistant Professor of Economics at the Universitat de València and Associate Researcher at the Ivie
Joaquín Maudos, Professor of Economics at the Universitat de València, Researcher at the Ivie and collaborator of the CUNEF
Paulo Medas, Senior Economist at the International Monetary Fund
Diego Rodríguez, Head of Division at European Central Bank
Vicente Salas, Professor of Business Economics at the Universidad de Zaragoza

Venue

Bolsa de Valencia
Salón de Actos
C/ Libreros 2 y 4
46002 Valencia