At this point, nobody can deny that the construction and housing industries have been devastated by the financial crisis, which lingers own despite the government's optimism. Weak spending has also ravaged other sectors in Spain such as retail shopping and hotels, which have shown an increased number of loan defaults recently.
According to figures from the end of 2013, retail loan defaults had doubled in two years. Defaults in the hotel industry had tripled. Slack spending has crushed these two sectors, and they cannot afford to add jobs or invest in improvements. This vicious cycle can only be broken by increasing industry profits with tax incentives. There is no other way.
