Essay on Foreign Direct Investment: Country Risk Assessment of Spain

5472 Words22 Pages
Table of Contents

A. Introduction 3
B. Political Indicators 4-11

C. Economic
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Spain has no official religion. The constitution of 1978 disestablished the Roman Catholic Church as the official state religion, but still recognizing the role, it plays in Spanish society. More than 90% of the population is at least nominally Catholic.
Through out the risk assessment, ratings are given before the risk indicator summary. These rating are given for current status and a status five years from now. Please keep in mind that the scale is measured from 1 – 7, 1 being the best and 7 being the worst.

B. Political Indicators
1. Political Stability Current Rating: 2
Forecast 5 Years: 3
Right now under the Jose Maria Aznar Lopez’s administration free market enterprises are being advocated to boost the economy. The government intends to make further progress in changing labor laws and reforming pension schemes, which are key to the sustainability of both Spain's internal economic advances and its competitiveness in a single currency area. Adjusting to the monetary and other economic policies of an integrated Europe - and further reducing unemployment - will pose challenges to Spain in the next few years.
Political tension in the Basque Country has eased tangibly since the mainstream Basque Nationalist Party (PNV) achieved its greatest ever victory in the
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