February 2, 2012

REAGANIZING:

Spain's big fix will enrage many workers (Charles Wallace, 2/02/12, FORTUNE)

Faced with the highest unemployment in the developed world and an economy skidding into a double dip recession, Spain is about to embark on a series of Reagan-style financial and labor market reforms whose success could affect the future of the entire euro project.

Economy Minister Luis de Guindos told Fortune in an interview that the reform package would include two sweeping changes to the country's stringent labor rules with the goal of making it easier for companies to hire and fire staff and pay them according to their needs rather than meeting national regulations.

The other major initiative will be aimed at reducing the number of the country's problem banks by demanding that all institutions take hefty markdowns on their problem real estate loans.
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Posted by at February 2, 2012 9:02 PM
  

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