OECD warns risk for Spain if the slowdown of reforms too hard – Yahoo Finance Spain

Paris, 26 February (EFE) .- The OECD believes that the slowdown of reforms in Spain observed in 2015 is not worrying too is not prolonged, but notes the risk is prolonged many months of uncertainty about the willingness of the next government to continue the reform.

the “short-term” problem is “uncertainty about the government’s willingness or not to continue with reforms

“, he told Efe one of the authors of the report of the Organisation for Economic Co-operation and Development (OECD)” Going for Growth “, presented at the ministerial meeting of the G20 in Shanghai. the counselor boss Alain economist Serres explained that investors are watching for signs that might give the authorities in this regard, that the current cliffhanger for the formation of a new government would be worrying if it lasts for many months, and estimated that until the summer would not have that fear incidents.

“If there is a very long period without reforms or very slow reforms, that may be of concern,” he said, before remembering that markets “political uncertainty (…) can have an effect. “

He assured that the reforms were carried out in Spain, as in other countries of southern Europe under pressure from the crisis” have had positive effects at least by gains in competitiveness “which has resulted in exports.

But also that” has done a lot in the labor market and little in the product market “where would it come further liberalization, “especially in services”.

in this regard, he repeated the council to remove barriers to entry into regulated professions, such as lawyers, architect or accountant.

he also noted that the OECD is committed to further progress in unifying the rules within the Spanish market.

as regards the changes made in the labor market at the time height of the crisis, in free fall in demand, acknowledged that at first favored layoffs.

But added that later, “when the situation was more favorable” employment recovery “has been more vigorous “than in other countries.

in any case, for the labor market what the OECD now suggests that Spain is” further harmonization “rights and protection of the different types of contract (temporary and permanent) to “reduce segmentation”.

This would be, according to De Serres, to offer protection “that is not very large at first,” but “will gradually increase” as so does the age of the worker.

the study “Going for Growth”, Spain appears in the group of countries that have addressed labor market reforms that have improved their competitiveness, which are also Greece , Ireland, Italy, Portugal and Slovakia.

known as the “Club of developed countries” it estimates that those States which were particularly affected by the crisis, made more reforms than in northern Europe , who were under pressure to do so.

the report’s authors warn of the general slowdown in the pace of reforms, particularly in a context where global growth prospects “remain very unclear in the short term. “

they note that to increase short-term structural reforms profitability must be solved” outstanding dysfunctional financial sector, “to improve the flow of credit to households and businesses with access limited access to financial markets.

in the euro zone, they stress that “greater synchronization of reforms would also reduce transition costs by giving greater scope for monetary policy”.