19 Jun 2010

Moves by Spain praised by IMF

6:25 am on 19 June 2010

The head of the International Monetary Fund says Spain is taking the right measures for economic stability.

After a meeting in Madrid with Spanish Prime Minister Jose Luis Rodriguez Zapatero, IMF managing director Dominique Dominique Strauss-Kahn said he is confident Spain's economy will recover.

He called on all Spaniards to back the government's austerity work.

The BBC reports Mr Zapatero earlier denied his government is seeking an IMF bailout.

He said on Thursday that Spain's economy was solid and solvent, and the visit by Dominique Strauss-Kahn was a scheduled one.

Mr Strauss-Kahn said all the measures being put in place by the Spanish government were "clearly being done for the benefit of the economy".

"I am really confident in the medium and long-term prospects for the Spanish economy," he added.

He specifically praised continuing efforts to liberalise the Spanish labour market, saying they went in "the right direction".