Rehn urges Spain to reduce salaries

FXstreet.com (Barcelona) - European Commissioner for Economic and Monetary Affairs Olli Rehn said in an article published on his blog that Spain should reduce salaries by 10%, as the International Monetary Fund suggested last week.

Rehn asked the Spanish government to continue implementing labor reforms and emphasized that a rejection to carry out a reduction of salaries by at least 10% would result in high costs in both social and human terms, and would be especially damaging for the unemployed youth.

Meanwhile, the pay cut would help boost hiring and lower inflation, stimulating consumption. Rehn suggested that in this respect Spain should follow the example of Ireland and Latvia.

Rehn's opinion is supported by the IMF, which asked Spain last week for an agreement between trade unions and employers on a salary reduction by 10%.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS