• Germany's news in English

Spain has 'done its homework,' Merkel says

The Local · 3 Feb 2011, 18:01

Published: 03 Feb 2011 18:01 GMT+01:00

Facebook Twitter Google+ reddit

"Spain has really done its homework and for that reason I think Spain is on a very good path," she said when asked during a joint news conference with Spanish Prime Minister Jose Luis Rodriguez Zapatero if she could "absolutely" rule out the need of a rescue package for Spain.

"The path that Spain is on is very positive, it's very good that they have carried out their reforms with the backing of unions and businesses ... and I think there's no room for any sort of speculation."

Her visit comes a day after Zapatero's Socialist government signed a "grand social pact" with unions and business groups on reforms to revive the economy that will gradually increase the retirement age from 65 to 67 just as Germany has done.

It also establishes the "basic principles" of a reform to Spain's collective bargaining system, which ensures joint wage rises across sectors and industries.

The deal is critical to Madrid's campaign to convince the markets that it can push through difficult labour reforms so as to speed up the economy, cut spending, finance the debt and avoid the need for a bailout such as those granted Ireland and Greece last year.

The government has also changed the labour law to make it easier to fire workers, a move it says will create jobs in a country with an unemployment rate of just over 20 percent, the highest level in the industrialised world.

Last week Madrid announced that all lenders must raise their levels of rock-solid core capital or face state intervention, its latest move to strengthen a financial system that is laden with bad debts from its exposure to a real estate collapse.

Story continues below…

"The reforms carried out by Spain deserve all our respect," Merkel said.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

19:05 February 3, 2011 by Landmine
Guy looks a bit like Mr Bean lol....
01:21 February 4, 2011 by fryintl
Let's look at reality. Andalusia has about 30+ percent, as does teh area around Avila. Zaragoza is around 17%. Why does anyone care? The industry in Spain is pretty central. Barcelona and Madrid, sevilla to a lesser extent and Pais Basco are set for recovery and will. The rest of Spain is poor, have very little chance to recover and will suffer long after the world disappears in 2012 (LOL). The beach areas will do fine as all of Europe's richest have bought the property around the beaches, so they will see artificial numbers, based on teh income of the owners of the property.

Spain needs a political change, and the socialists must be taken from power. Teh days of Manual Braga, and his butt wipe Filipe Gonzalez are not yet over. Jose Maria Aznar is still needed and the COnservatives need to get into position when the German model fails due to a lack of industrial base.

We are going to see Spain float, Ital and Portugal will to, they are not going to have any m,arked improvement for soem time and if they are lucky, adn I love spain, they may survive this poor market. Protectionist tarrifs are the only way to save the Spanish, Italians and Portuguese. With teh European market being combined, that option is not available, so Germany will have to support the growth or sustainment (france to a lesser degree) of the entire union. The UK has the old money and banks, so they will have to be the lenders and will get very rich without doing much to improve the industrial base of the UK.

EUROPE: Your success is dependent upon two to three economies and if you are lucky, the smart people will be making the decisions.
08:52 February 4, 2011 by marimay
You thought the bubble in 2008 was big...

Just wait.
12:55 February 4, 2011 by freechoice
if Spain has done her homework, she wouldn't be in trouble right?
15:00 February 4, 2011 by Nemesis
Spain has done its homework.

Strange its economy crashed if I can remember correctly.
16:47 February 4, 2011 by catjones
Muchas gracias for the carping condescension Señora Merkel.
Today's headlines
Anger as Berlin scraps Turkey concert on Armenia genocide
The Dresden Symphony Orchestra. Photo: DPA

Germany's foreign ministry Tuesday scrapped a planned symphony performance on the Armenian "genocide" in its Istanbul consulate, sparking accusations that it was caving in to Turkish pressure.

Obama to visit Berlin in last presidential trip to Germany
President Barack Obama and Chancellor Angela Merkel during a Berlin trip in 2013. Photo: DPA.

The White House announced on Tuesday that US President Barack Obama will be paying one last unexpected visit to the German capital - his last before he leaves office.

Hostility towards minorities 'widespread in Bavaria'
A village in southern Bavaria. Photo: DPA.

Hate and hostility towards groups deemed to be different are not just sentiments felt by fringe extremists, a new report on Bavaria shows.

Hated RB Leipzig emerge as shock challengers to Bayern
RB Leipzig. Photo: DPA

RB Leipzig's remarkable unbeaten start to the Bundesliga season has seen them suddenly emerge at the head of the pack chasing reigning champions and league leaders Bayern Munich.

Munich taxi driver in hospital after attack by British tourists
Photo: DPA

A taxi driver had to be hospitalized in Munich on Monday evening after three British tourists refused to pay their fare and then attacked him.

German police carry out nationwide anti-terror raids
Police outside a building in Jena during raids on Tuesday. Photo: DPA

Police forces in five German states carried out raids on Tuesday morning with the aim of tackling the financing of terror groups, police in Thuringia have reported.

The Local List
10 ways German completely messes up your English
Photo: DPA

So you've mastered German, but now it's time to learn English all over again.

Iconic German church being eroded away by human urine
Ulm Minster towering over the rest Ulm surrounding the Danube. Photo: Pixabay

It will now cost you €100 to spend a penny. That’s if you get caught choosing to pee against the world-famous Ulm Minster.

German small arms ammo exports grow ten-fold
Photo: DPA

The government has come in for criticism after new figures revealed that Germany exported ten times the quantity of small arms ammunition in the first half of 2016 as in the same period last year.

14-year-old stabs 'creepy clown' in prank gone wrong
File photo: DPA.

A 16-year-old in Berlin decided he wanted to scare some friends, but his plot backfired in a violent way.

Germany's 10 most weird and wonderful landmarks
Sponsored Article
Last chance to vote absentee in the US elections
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd