'His government has applied this lesson to the Eurozone crisis to catastrophic results.' The two economists go on to suggest that government efforts to obtain European Union (EU) funding without set terms, 'threatens the collapse of the Euro,' and that Spain's six month budget delay has slowed down inevitable reforms demanded by the EU.
Austerity packages are having a 'devastating effect' on voters, say the economists, 'who can't see the difference between spending cuts and structural reform.' On top of this the economic crisis may become an institutional one, as some regions of Spain consider a genuine bid for independence.
'The Spanish government should abandon populist temptations and implement a program of genuine reform,' conclude Garicano and Villaverde. (ANSAmed).