VOICED : FMI recomienda bajar salarios

The FMI suggests that Spain's economic contraction may soon end, but high unemployment remains a concern. A better balance between salary reductions and job losses is needed. Despite positive signs, Spain faces difficult economic prospects and requires more support from Europe. Spain is undergoing a challenging adjustment following years of economic boom, which is crucial for both Spain and the eurozone. The FMI insists on budget cuts to reduce Spain's deficit from 7% of GDP in 2012 to 5.5% by 2014.

What concern does the IMF have regarding Spain's economic situation?

• High inflation rates

• High unemployment rates

• Low foreign investment

• Rising public debt

What does the IMF suggest as a better balance for Spain's economy?

• Increasing taxes and reducing public spending

• Reducing wages and maintaining employment

• Reducing interest rates and increasing loans

• Increasing exports and reducing imports

What does the IMF believe Europe should do to assist Spain?

• Increase trade barriers

• Provide financial aid

• Reduce immigration

• Offer military support

What is the target deficit reduction for Spain by 2014 according to the IMF?

• From 7% to 5.5%

• From 7% to 4%

• From 7% to 6%

• From 7% to 3.5%

Why is a smooth economic adjustment important for Spain and the Eurozone?

• To boost technological innovation

• To stabilize the Euro

• To enhance cultural exchange

• To increase tourism