Spain: 2010 Article IV Consultation: Staff Statement; Staff Supplement; Staff Report; Statement by the Executive Director for Spain; and Public Information Notice on the Executive Board Discussion
Volume/Issue:
Volume 2010
Issue 254
Publication date: July 2010
ISBN: 9781455202836
$20.00
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Banks and Banking , Finance , Labor , Economics- Macroeconomics , Public Finance , ISCR , CR , decree , reform , savings bank , severance payment , saving bank , policy development , staff supplement , staff statement , capital participation , Labor markets , Employment , Commercial banks , Wages , Global
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Summary
Spain’s economy is facing severe challenges. Financial market tensions increased sharply in the wake of the Greek crisis. Policy should focus on rebalancing of the economy and securing market confidence. Ambitious fiscal consolidation is under way, but achievement of the targets needs to be made more credible and complemented by bold pension reform. A radical overhaul of the labor market is urgent. Progress in recent years on product and service market reform should continue. The banking sector remains sound but is under pressure.
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