IMF urges Spain to pursue wage restraint – The New Spain

IMF urges Spain to pursue wage restraint – The New Spain

applied EP / washington The International Monetary Fund (IMF) has recommended Spain continued wage moderation that has allowed its economy, with reforms such as labor market and the consolidation of the banking sector become more competitive and have a growth forecast “relatively bright.”

“The challenge is to maintain economic growth and employment recovery. That means preserving the competitive gains achieved , “Poul Thomsen defended, director of the European Department of the IMF.

” Part Recipe must be continued wage moderation, but that’s not the only ingredient in the recipe, “said the representative of the institution.

So, Thomsen said that Spain also needs reforms to improve the

business environment and efficiency, as well as train unemployed for have the necessary skills to return to work , and reforming the fiscal framework so that it can adapt abarantando hiring workers with low education .

However, the IMF European director stressed that Spain “has done much” and to avoid the risk of a double dip recession should “continue doing what you’ve been doing.”

In this regard, the representative of the Fund stressed the “tremendous effectiveness” of the recapitalization of the banking system and the labor market reform. “I think the benefits are being seen in the restoration of growth,” said.