To put it differently, the number one impairment towards competitiveness for Spain, Portugal, Italy and Greece (and others) is a culture of over-legislation that suffocates people and small and medium size business.
Living in most societies today is like living in a condo with 100000 pages worth of rules or using a TV with a 100000 pages manual.
I am not sure whether it's bureaucracy that creates over-legislation or vice-versa, but the solution starts with curbing the latter first.
Products are tested for side-effects etc before they are released. But legislation is not.
The raison d'etre of politics is to produce public policy, not public relations. Political parties need to become policy making "factories"
But it should be noted that a fewer and better laws philosophy does not mean no laws, ie it's not a libertarian's wet dream.