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UPDATE 1-ECB's Ordonez says Spanish structural reforms urgent

Published 03/31/2009, 04:49 AM
Updated 03/31/2009, 04:56 AM

MADRID, March 31 (Reuters) - Spain must urgently adopt structural reforms to its economy, including making collective bargaining more flexible, to stem the country's rising unemployment level, European Central Bank Governing Council member Miguel Angel Fernandez Ordonez said on Tuesday.

Spanish unemployment, already about 15 percent, could reach very worrying rates without additional measures, and the economy will not return to previous growth levels without major reforms, the Bank of Spain governor said in a speech in Madrid.

Spain must also design a strategy to return to a fiscal balance, he said.

(Reporting by Andrew Hay; Editing by Sarah Morris)

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