IMF backs cuts to public spending
Austerity measures aimed at slashing the budget deficit are taking Spain in the right direction, the IMF said yesterday.
The planned spending cuts and labour reforms have been criticised by some analysts for not going far enough.
But after meeting Jose Luis Rodriguez Zapatero, the Prime Minister, the IMF chief, Dominique Strauss-Kahn, said: "The measures this government has decided on are absolutely in the right direction ... The government is not only trying to solve short-term problems but is building the foundations for two decades of growth in this country."