IMF pressures Spain to weaken labor laws

[midnight]

"The IMF called on Madrid to give more flexibility to employers when it comes to hiring and firing by reducing the legal requirements for temporary and permanent workers. It also called for the government to push for changes in contracts between business and unions that would reduce wages, which the international lender said would "encourage" companies to hire more.

"This is a complex issue and various interlocutors expressed misgivings," the IMF said in the report. "Some argued that a strong agreement would be difficult to negotiate and enforce, there being currently little common ground between the different stakeholders."


"The Spanish government is resisting IMF pressure to overhaul its labor rules. "The labor reform is already done -- what we'll do is minor adjustments," Labor Minister Fatima Banez told reporters Friday.

The IMF also said Spain should continue cutting its public spending. By contrast, IMF head Christine Lagarde warned the U.K. in April that proceeding with planned budget cuts could damage the economy."


http://www.cbsnews.com/8301-505123_162-57596746/imf-pressures-spain-to-weaken-labor-laws/

[adirondacker]

1. Nice to see we're in good company with the trickle down economic plan of the IMF.

Spain probably has the choice of either going the Icelandic route or the Greek route if they don't do what is told.

Pathetic that this is what it's coming to.

[midnight]

2. I was not aware that the IMF was in charge of labor laws...

[adirondacker]

3. It's odd that they come down on Labor rather than tax dodgers consistently.

It would be nice to see the IMF go after the real culprits. How about a 90% tax on the 10%