"Spain hurts." This is a phrase that most of our titans of industry are saying after quarterly earnings reports, because during this difficult crisis it has been confirmed that Spanish companies are making more money outside of the country than within it. Domestic performance of major Spanish banks (Santander, BBVA, Banco Popular, La Caixa and Banco Financiero y de Ahorros) has decreased nearly 30%.
Telefónica is showing a clear asymmetry between the development of its internal and external business. The situation reveals, on the one hand, the forward-thinking vision and strategic ability of companies that have learned to diversify and operate in other markets (including emerging markets) in order to crawl out of a challenging economy and balance overall profits results. They are showing their ability to produce in other regions of the globe and to spread Spain's brand.
But what the situation really shows is that during Zapatero's last two terms in office, he has wasted precious time in undertaking economic reforms that will offer our labor market and business networks necessary conditions for recapturing the dynamism that will affect everyone. These measures cannot be delayed further.
