The European Commission says Spain will have to make adjustments and … – Los Andes (Argentina)

The European Commission (EC) today held that Spain will have to apply “more structural measures” in 2015 and 2016 to meet deficit reduction, while he advised the country to link wages to productivity.

In its recommendations to Spain, the EC considers plausible macroeconomic scenario in which the government relies to set deficit targets of 4.2% of GDP in 2015 and 2.8% for 2016 and to a balanced budget in 2019 and gradually reduce debt.

However, compared to their own forecasts of a deficit of 4.5% of GDP this year and 3.5% the following considers that there are ” risk “that nominal objectives” can not be achieved, “and estimates that the fiscal effort planned by the Spanish government until 2016 is” below the recommended level. “

In this way, the EC states that will “further structural measures in 2015 and 2016″ in order to comply with the stability and growth pact (SGP).

In its recommendations to the country, advises the Government to take the “windfall” to accelerate the reduction of the deficit and debt and to strengthen the transparency and accountability at the regional level about their efforts or not to put their public finances in order, an old claim of the EC.

As for the labor market, the EC indicates that wages for some sectors and businesses in the short term “may need to grow below productivity” to create jobs and win competition.

In this regard, recommends that the Spanish Government to “promote the alignment of wage and productivity” in consultation with the social partners and according to national practices.

To do this, Spain must take into account differences in skills and conditions local labor market and the differences in performance across regions, sectors and different companies.

The EC also advised to Madrid to take measures to increase the quality and effectiveness of care and the advice on job search, including them in the strategy to tackle youth unemployment.

Also recommended “minimum income align with family support systems” and enhance regional mobility.

Finally, ask Spain to remove the barriers that prevent companies grow, adopt the planned reform on professional services and accelerate the implementation of the law guarantee the unity of the market.