IMF downplays Spain’s economic woes

International Monetary Fund Managing Director Dominique Strauss-Kahn pauses during a news conference with Spain's Prime Minister Jose Luis Rodriguez Zapatero, unseen, at the Moncloa Palace in Madrid, on Friday. The meeting took place to discuss the Spanish economic situation. Photo: AP.

International Monetary Fund Managing Director Dominique Strauss—Kahn on Friday said he had a strong trust in the recovery of the Spanish economy.

The anti—crisis measures adopted by Prime Minister Jose Luis Rodriguez Zapatero’s government were “very efficient,” Mr. Strauss—Kahn said after holding talks with the premier during a working visit to Madrid.

Mr. Zapatero said he had informed Mr. Strauss—Kahn about new policies such as labour market and pension reforms which would allow “Spain to overcome the crisis with strength.” The reforms could let Spain to lay the foundations for growth in the next two decades, Mr. Strauss—Kahn said.

The European Union and the IMF have dismissed reports that Spain was about to be engulfed by a debt crisis similar to that of Greece.