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The International Monetary Fund defends that Spain needs additional reforms to continue with recovery


- More labor reform to create jobs

In this context of recovery, however, the IMF has highlighted, once again, that the pending issue in Spain is still employment and that, although half a million jobs have been created, still more than five million Spaniards are still unemployed, "many of them young", has pointed out.

Therefore, the Fund has defended that Spain must do more to create jobs and returned to insist that you have to keep betting on greater wage as of schedules both flexibility.

- Cheaper dismissal

The Fund stressed the duality of the Spanish labour market between indefinite-term contracts and temporary and, at this point, opted for cheaper indefinite dismissal which is still much higher than the one storm, and "this gap must be closed".

- Single contract

It has also bet again by the introduction of a single contract as another formula to end the duality of the Spanish labour market.

- More fiscal adjustment at all levels of the Administration

The Agency has emphasized again on the need to continue with fiscal adjustment. "A sustained, coordinated and credible fiscal consolidation will maintain confidence and reduce vulnerability to potential adverse shocks", he said.

- Raise excise duties and raise VAT

The IMF has advocated for increased special and environmental taxes and a gradual reduction of preferential treatments in VAT (i.e. cease to apply the VAT reduced or superreducido to certain products) that "they would improve revenues to levels closer to those of other European countries," said.

- Copayment in health and education

In addition, has opined that at the regional level, "could be additional tax savings - for example through the reduction of costs in the provision of health and education services, and, as was recommended by the Committee of experts for the tax reform last year, increasing the responsibility of the autonomous communities in the co-payment for these services", added.

Source: News published in Expansion on 8 June 2015