adminregarding banks and labour reform, which has clearly improved the flexibility of the labour market, but there is still a lot to be done,” Draghi said after an official visit to the Spanish congress and a meeting with Rajoy.
“It is important to have a fiscal plan for the medium term with detailed information over spending cuts and adjustments. It is essential if they want to maintain their access to finance markets,” he added.
Draghi said he was optimistic about the future of the Spanish economy, although he admitted that many Spanish people were suffering as a result of the cutbacks being carried out in Spain. He said it must be frustrating for Spaniards, given there were little visible signs of improvement in the economy and that reforms would need time for their effects to be seen.
“I have come to listen and to recognise all of the efforts that are being carried out in Spain. We are very aware that the people are suffering,” he said.
Many experts believe Spain may need a sovereign bailout but with the country’s risk premium currently less than 400 points and 10-year bonds at 5,3 percent, Rajoy is resisting such calls. — Xinhua.
Online Reporter