Spain has experienced a spectacular transformation in the last 20 years. There was an export of workers (emigrants) mainly aimed at advanced European countries. However, after the formation of the European Union and the modernization of the country, an important change has occurred. This economic launch has also extended to sports, arts, architecture, etc.

Spanish companies (multinational companies such as banks, mobile telephones companies, civil works firms, etc.) are present in many European, American and Asian countries. As a result, Spain has become a member of the exclusive club of the most advanced economies in the world.

During the last few years, the Spanish economy has been driven by the construction field. This field has generated a lot of jobs. The construction of houses has provided more than 8% of the current population with a job and it has been, with no doubt, the heart of the Spanish economy during the last 10 years. However, due to the current real estate crisis, this area has suffered a sudden setback. The result is that there is a huge number of empty houses that cannot be sold.

On the other hand, the Spanish economy has had other areas that have contributed significantly to the economic growth; the main one being tourism. Tourism has contributed more than 10% of the Gross Domestic Product (GDP) of the Spanish economy. However, the current worldwide economic crises has affected the primary sources of tourists (England, Germany...), combined with other countries such as Turkey, Morocco, Croatia, Tunisia, etc., offering prices more attractive than Spanish ones, have caused a large decline in the number of tourists coming to Spain.

The use of the Euro made Spanish holiday packages more expensive compared to other countries that offered competitive prices. These, among others, are the reasons for proposing a change to the current economic model, supporting more dynamic and innovative sectors because the current Spanish economic model is exhausted. Gone are the times of economic growth we lived in during the 90’s and the first years of this decade. The Spanish economy used to have an annual growth between 3 to 5%. However, now that we have been plunged into a tremendous crisis and have the highest rates of unemployment in all Europe, the Spanish economy has shown signs of the need for a change of strategy towards a new economic model.

Recently, the Nobel Prize Winner for Economics, Paul Krugman, was in Spain. According to him, if Spain does not make changes, especially in the working sector, the consequences can be drastic. According to this prestigious economist, Spain needs to perform major labor reforms, the most important being a wage cut, which is a very complicated for a socialist government. The Spanish government, aware of the economic problems, is focusing its strategy on:

1. The innovation and support of qualified employees and the proper training of workers.
2. Support to areas related to renewable energy and energy efficiency.

This includes a boost in the recycling industry, telecommunications, water & waste treatment, hybrid vehicle manufacturing, etc.

In the next few years, environmental conservation will be a sector with great potential and an added value source of employment. Spain is focusing its efforts on decreasing energy consumption by 20%, so it can be put itself at the level of other advanced countries in the European Union. It will also boost and encourage other advanced sectors such as Biotechnologies, Aeronautics, Health services, Agricultural engineering, Chemistry, etc.

Currently, industry accounts for 17.5% of the Spanish Gross Domestic Product (GDP), but according to the government, this percentage should increase to at least 20% in 2015. Our model should be countries like Sweden, France or Denmark. Research should be increase, as well as the collaboration between universities and companies. Education should also be an essential basis to economic improvement. Therefore, it is necessary to urgently reform our labour market, which should be aimed at improving overall quality, i.e., a culture of doing things right.

At the moment, the government has announced direct aid for those purchasing cars, hoping to help the paralyzed auto sector. Corporate Tax will be reduced by five percent for companies that have less than twenty-five workers and profit of less than five million Euros. Also, in the education sector, classrooms will be equipped with electronic blackboards and wireless Internet connection. Changes in the economic model will have no short-term effects, but better late than never.