OECD: Spain needs huge reform

 OECD: Spain needs huge reform: "Spain, in the eye of financial markets which are shunning its debt bonds, has done much right, is fighting the crisis well, but must reform its labour legislation and employment practices, the Organisation for Economic Cooperation and Development said.

The economy, which stalled in the third quarter after edging out of deep recession, is now set for 'subdued' growth but the blows of the last two years will leave 'lasting' scars and the unemployment rate, now about 20 percent, will remain among the highest in the European Union, the OECD estimated.

This regular country assessment is likely to be read in particular detail on financial markets which see Portugal and Spain as being at high risk of eventually needing a debt rescue, as has already been the case for Greece and Ireland.

The sovereign debt crisis in the eurozone took a new turn at the end of the last week when European Union leaders agreed to adjust a basic treaty to create a permanent rescue fund, marking a small but important step towards new EU-eurozone architecture."

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