Spain’s recent overhaul of their banking sector as part of the euro-zone bailout is moving forward. The European Commission recently reported, however, on even more steps that Spain needs to take. The review was co-authored by the Commission and the European Central Bank.
The review said that “much work remains ahead” so that the asset manager would be completely operational. The country’s economic situation continues to be “very challenging” as noted by the review. This includes shrinking economic output and an ever-rising unemployment rate. As the report stated, “Notwithstanding the significant policy progress already made, further advances remain necessary in the consolidation of public finances.”
The economics chief for the EU, Olli Rehn, said, that Spain needs to “maintain its focus on both public finances and determined implementation of economic reforms.”
The next review of Spain’s progress is targeted for May of 2013. The International Monetary Fund also plans to publish its own conclusions.