Trichet thinks about the labor reform

Jean Claude Trichet, president of the European Central Bank (BCE), has made sure that the structural reforms “can neither be avoided nor postpone” in Spain. French did special emphasis on the labor market, one of the most rigid of the euroarea, and in a change of productive model to detach from the sector construction construction.

This way, the president of the BCE, that there did this consideration during his intervention in the Annual Convention Financier organized by the Association of Financial markets, praised to the Spanish financial sector and considered it to be as “a source of force and national pride”.

Trichet made sure that the Spanish financial system has been “a leader“ in many cases, in addition to being “more resistant” that others in the first stages of the crises.

For the European chief, the Spanish entities have created before the crisis “a good series of cushions” that it has helped during the recession, although he made sure that adjustments will be needed. In fact, the Governor of the central bank of the euroarea endorsed the words of the Spanish governor Miguel Ángel Fernández Ordóñez, that last week he made sure that at least fifteen boxes should have fused before the summer comes.

Trichet also has indicated that and l "exceptional" support that the Governments have granted to the financial institutions during the crisis “it will be necessary to go withdrawing it”, and he made sure that the "recipe" to return to the stability is “a solid management”.

Nevertheless, Trichet wanted to make clear that is still "premature" to affirm that the crisis has finished and has warned that in the next years the public debt will be major than in the past, therefore it will be important to do an effort in the fiscal consolidation.

Trichet stopped in the Spanish case, of which he emphasized that the fiscal consolidation had progressed more than in other countries. Nevertheless, The banker has affirmed that he will have to make sure that it supports his fiscal credibility respecting the requisites of the Agreement of Stability and Growth of the EU, which limits to 3 per cent of the GDP the public deficit. This way, he has remembered that Spain has been a witness of many processes of restructuring of the financial system in the past that have given like turned out a model “of big success”.

The chief of the BCE has underlined that the Spanish economy "presently" approaches at the “higher economic and social level of the entire world”, although it has made the most of the opportunity to remember that before the crisis began the growth boss was not sustainable.

Image CC of World Economic Forum

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