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
IMF Staff Country Reports, July 30, 2010
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- 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
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Bibliographic details
- Published: July 30, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455202836.002
Overview
- Publication date: July 30, 2010
- Core message: 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.
- Immediate priorities identified: credible fiscal consolidation complemented by pension reform; radical labor market overhaul; continuation of product and service market reforms; monitoring of banking sector pressure despite overall soundness.
Key findings
- Financial market tensions increased sharply in the wake of the Greek crisis.
- The banking sector remains sound but is under pressure.
- Progress in recent years on product and service market reform should continue.
Policy recommendations
- Fiscal policy:
- Ambitious fiscal consolidation is under way, but achievement of the targets needs to be made more credible.
- Fiscal consolidation should be complemented by bold pension reform.
- Labor market:
- A radical overhaul of the labor market is urgent.
- Product and service markets:
- Continue reforms enacted in recent years to improve flexibility and competition.
- Financial sector:
- Secure market confidence and monitor pressures on the banking sector.
Subject coverage and keywords
- Subject areas: Banking, Commercial banks, Employment, Financial institutions, Labor, Labor market reforms, Labor markets, Public debt, Wages
- Keywords: capital participation, Commercial banks, CR, decree, Employment, Global, ISCR, Labor markets, policy development, reform, saving bank, savings bank, severance payment, staff statement, staff supplement, Wages