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Spanish labour market rules need rewriting, says the IMF (Photo: vgm8383)

IMF calls for radical cuts in Spain

The International Monetary Fund has issued blunt warnings to Spain, calling on Madrid to implement harsh cuts and transform the country's labour market and pensions system, while also stressing the need for consolidation in the domestic banking sector.

The requested changes, contained in an interim IMF report published on Monday (24 May), are designed to help employers by reducing severance payments, make it harder for unions to fight dismissals and encourage "wage flexibility".

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Spanish labour market rules need rewriting, says the IMF (Photo: vgm8383)

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