"The paper presents an account of the economic policy followed by Spain during the economic and financial crisis of 2009. After a first reaction based on the application of countercyclical policy, in 2010, following the directions and pressures of the European Commission and in a desperate intent to regain the confidence of the financial markets, the Spanish government made a U-turn in his economic policy embracing, with the faith of a convert, the doctrine of expansionary austerity and making the fight against public deficit its unique priority. This article reviews how this policy, jointly with labour market reform carried out at the same time, has affected the relative weak Spanish Welfare State."

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