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The Productive Structure (Within tertiary activities, trade and repairs,…

- - - - The prices of the factors -labour costs, raw materials, energy or rents, among others- grow at a similar rate, irrespective of the productive use to which they are put. Consequently, if an increase in costs is equal in all productive activities, any change in prices will be determined by the capacity to attain increases in productivity that absorb the cost increases. As the advance in productivity has been substantially less in the production of services than in the production of goods, the prices of services must have grown more than the price of goods
    - - The growing share of services in nominal output is the consequence of them becoming more expensive, due to the slow advance in productivity, which, in turn, induces consumers -when this is technically possible- to modify the way they satisfy their needs, shifting from services to goods Income- Elastictiy equal to one
    - - The small advance in productivity in services explains the notable increase in employment that has been necessary to achieve a growth in output. specialisation in low-qualified-labour-intensive activities -like commercial distribution and tourism-related activities-, the little or no competition that has traditionally been seen in many services, thus delaying their technological modernisation, and the small size of businesses
        
        the labour productivity is greater in industry than in the other sectors, which are more labour intensive and less permeable to labour saving technical progress and less exposed to foreign competition. Together with agriculture, subjected to an intense mechanisation and modernisation process in the last few decades, industry (except construction) is the activity that shows the best productivity per hour worked performance
        
        Unit labour costs. According to this indicator, since 1995, the Spanish economy has suffered a constant loss of competiveness against the industrialised countries, arising from pay rises that are higher than gains in productivity.competitiveness indicators based on international market share - revealed competitiveness- offer a more favourable view of Spain's competitive position
        
        The adjustments made in construction because of the international crisis that have mainly driven the recovery of productivity in more recent years.
        
        The differences grow in the services sector, the sector that shows the greatest difficulties to improve productivity, where the modest increase of 0.6% achieved in the EMU easily exceeds the mere 0.1% achieved by Spain
        
        The reasons for the slow advance of productivity must be sought in factors other than the production structure. These include the excessive burden of governmental regulations, the lack of efficiency in the way goods and services markets work, as a consequence of the high level of administrative bureaucracy, and also, the inefficient and rigid operation of the labour market.
        
        On top of these structural features of the Spanish economy, there are other aspects like little innovation, limited progress in incorporating and disseminating information and communication technologies and the deficiencies in the Spanish education system
- - - - In the first decade of the 21st century, certain interests and the legacies of past interventionism impede modernisation in some activities
- - - - Mac Sharry Reform was adopted in 1992, based on the principles of reducing agricultural prices -accompanied by compensatory payments to off-set the fall in agricultural income- and the articulation of a rural development policy
        
        mid-2003 to deal with the demands of the WTO and the new financial framework appearing after the enlargement of the European Union to the east in 2004 and 2007
        
        Commission's 2010 proposal, focuses on three key elements: a review of the structure of direct payments, greater efforts to foster innovation in the framework of the rural development programmes and finally, new instruments to mitigate the excessive volatility of agricultural raw material prices
- - - - high concentration among a few companies in the energy network sub-sectors continues
      - the 2011-2020 Energy Plan is for 20% of the final energy consumed to come from renewable sources