Spain has been warned by the IMF to curve their spending to cut government deficits to prevent another “Greece” from happening.
The IMF statement, issued at the end of a routine consultation with the country, served as a reminder of how the same issues that have caused an acute panic in Greece are troubling other European nations.
In Greece’s case, issues including high government debt and uncompetitive labor markets pushed the country to a near-default before the IMF and a collection of European Union countries offered an emergency bailout.
But the long list of IMF recommendations for Spain shows just how tough a climb it might be for the euro area, as it tries to renew growth and regain its competitive footing.
Spanish labor markets are “dysfunctional,” the IMF said, using a set of collective bargaining agreements that “hamstrings” companies’ ability to hire and fire and set wages.
If you watched the video I posted here of Gerald Celente he said the next country to fall would be Spain… so far he is on target
