The Bank of Spain asks autonomous communities for greater austerity

The Bank of Spain?s Governor demands that autonomous communities and local administrations cut public expenditure even more. He has added that most of the means announced by these public administrations are too far from the level of reductions the Spanish


June 22, 2010 09:37 PM

Madrid (CNA).- Miguel Angel Fernández Ordóñez, the Bank of Spain’s Governor, has asked autonomous communities and local administrations to contribute on a greater scale to reduce Spain’s public deficit. Ordóñez has justified this petition as, in his opinion, many of the measures and austerity plans announced by some autonomous community Governments and local administrations are not drastic enough and thus not enough for what the Spanish economy needs.
At the Economy Commission of the Spanish Parliament, Ordóñez has alerted this Tuesday on this issue. He has also added that the labour market reform needs to be improved through parliamentary approval. He has asked for “greater clarity” in the writing of the measures to foster indefinite contracts. Ordóñez has also questioned the “new limits” of temporary contracts, and the current levels of unemployment, where “all hiring possibilities need to be open”. He has concluded his intervention before the Parliamentary Committee saying that in the last week, significant bridges have been crossed regarding the fiscal consolidation programme, pension reform and labour market reform; however, greater work on these issues needs to be accomplished.