'Spain must deepen labor reforms'

President of the European Central Bank French Jean-Claude Trichet

Source: Press TV
http://www.presstv.ir/detail/154926.html


The European Central Bank (ECB) has urged Spain to expand its labor market overhaul and deepen pension reforms, amid speculations that Madrid might be the third eurozone country to accept a bailout.

ECB president Jean-Claude Trichet told a news conference in the Spanish capital, Madrid, on Friday that for Spain “It is extremely important to deepen the reform of the labor market.”

"It is extremely important that the deficit target (in Spain) for this year and next year are fully substantiated by measures," he added.

Spain might be the third eurozone country after Greece and Ireland to accept an international bailout.

Madrid has already planned to raise the retirement age and make it easier to hire or fire employees.

The measures are aimed at slashing Spain's unemployment rate, which stands at 20 percent, the highest in Europe.

The reforms have faced fierce opposition from the country's major unions, which staged a general strike on September 29 in protest, but the government has shown no signs of wavering.

Spain's budget deficit in 2010 is estimated at 11.2 percent and the government has announced it needs to save 15 billion euros ($18 billion).

The trade unions, disappointed with the Spanish government's plans, say public sector workers are the ones who pay the heavy price of major budget cuts.

Much of the anger is now focused on the ruling Spanish Socialist Workers' Party led by Zapatero for having failed to meet promises made during the 2008 general election.