Spain: Financial Sector Reform—Final Progress Report
IMF Staff Country Reports, February 20, 2014
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- Canonical URL
- Spain: Financial Sector Reform—Final Progress Report
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Bibliographic details
- Published: February 20, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475517804.002
Overview
- Title: Spain: Financial Sector Reform—Final Progress Report
- Publication date: February 20, 2014
- Context: Reviews progress under Spain’s European Stability Mechanism (ESM)-supported program of financial sector reform adopted in mid-2012.
- Primary objective of the program: Assist economic recovery by promoting financial stability.
Key findings
- The Spanish authorities’ implementation of the program has been steadfast.
- All of the program’s specific measures are now complete.
- Major structural reform efforts in a variety of areas (including labor and fiscal policies) will need to continue to achieve sufficiently rapid growth to bring unemployment down to reasonable levels over the medium term.
Analysis and implications
- The program’s completion implies that financial-sector-specific reforms associated with the ESM-supported program no longer require further measures under that program.
- Sustained progress in broader structural reforms (labor, fiscal, and related areas) is necessary to translate financial stability gains into stronger growth and lower unemployment over the medium term.
- The interaction between financial-sector repair and broader macroeconomic policies remains central to achieving a durable economic recovery.
Policy recommendations (implied by the report)
- Continue major structural reform efforts in labor markets.
- Continue fiscal policy reforms to support medium-term growth.
- Maintain focus on policies that convert financial stability into private-sector-led recovery, supporting job creation and lowering unemployment.
Content in this bundle
- Spain: Financial Sector Reform--Final Progress Report; IMF Country Report 14/59; February 2014