Weaknesses remain, but Spanish growth prospects aren't bad

In a recent policy paper, Simon Tilford, deputy director of the CER, a London-based think-tank, argues that the recovery is not a result of austerity and reforms and that the economy's outlook is cloudier than the dominant narrative suggests. High levels of debt and unemployment, deflationary risks, stubbornly low productivity and dangerous demographics all make the recovery weak. Moreover, argues Tilford, when the next recession hits Europe, Spain will not be well prepared to face it.