00:00Spain has an economy of almost two trillion dollars and is among the four largest economies
00:06of the European Union and the 12th largest in the world. But there's a problem. In terms of
00:12income per capita, it lags far behind Germany, France, and other leaders of Western Europe.
00:18And the reason is not only that Spain earns less, the country has also taken on huge social
00:23obligations at the same time. In 2025, 13.7% of GDP was spent on pension payments and the pension
00:33fund itself ended the year with a deficit of 7.4 billion euros. And that's just one part of the
00:40problem. High social spending is combined with strict regulation of the labor market and business,
00:45which is why Spanish companies often prefer not to grow large so as not to incur new costs and
00:51restrictions as they scale up.
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