In Spain, Bankruptcies Undermine Economic Growth

Despite recent data suggesting that the unemployment crisis is stabilizing and that the contraction of Spain's economy is slowing down, the European economic crisis continues to hurt Spanish companies. During the first half of 2013 there was a record number of bankruptcies, especially by small- and medium-sized enterprises in the construction and industrial sectors. In this context, the European Central Bank has few ways to deal with this situation, which threatens to undermine Spain's ability to achieve sustained economic growth.