This study takes a non-orthodox perspective: on the one hand, because it chooses to focus on demand (rather than on supply) and, in particular, because it examines foreign sector demand as the key factor in explaining the processes of economic growth and crisis; and, on the other, because it considers the euro (and the EMU) to be a problem without remedy for its country members. Indeed, for both economic and democratic reasons, the best thing that these countries can do is to start dismantling the system.
From this perspective, the study first examines the evolution taken by the main macroeconomic variables of the Spanish economy, focusing above all on the sources, causes and consequences of growth and of the current crisis before and after the introduction of the euro. In so doing, the paper adopts a highly innovative approach that includes the perspective of sectorial balances developed by Wynne Godley and his disciples. Secondly, the paper argues that the main macroeconomic imbalances and asymmetries have become manifest in the period 2008-2013, especially if we consider Spain’s outcomes in relation to those of the main countries of the eurozone and the averages of the EU-27 and the EU-15. Thirdly, in an analysis of claims that the Spanish economy is beginning to show signs of recovery, this study looks at the explanations for this supposed turnaround. Finally, the paper concludes by outlining various suggestions from the perspectives adopted throughout the study, taking into account the main challenges that the Spanish economy faces.