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Speaking in Palma, the governor of the Bank of Spain, Luis María Linde, has highlighted the robustness of both national economic growth and the banking system. At the fourteenth conference of the Balearics’ Colegio de Economistas (it doesn’t literally translate as “economists”), Linde offered views on the situation and prospects for the Spanish economy, saying that he was in favour of the consolidation of reforms (by the government) and the pursuit of correcting imbalances in the economy, namely high levels of unemployment and debt. He also stressed the need for retaining commitments of fiscal consolidation. Linde believes that the main challenges for the Spanish economy come from the external environment and emerging economies, which are currently faced with greater slowdown than had been anticipated.

“Domestically, the main risks are associated with the uncertainty of economic policies in the medium term. There is, in particular, a hypothetical loss of confidence because of the exhaustion in the process of reform and insufficient compliance with commitments to fiscal consolidation.” Linde pointed out that these polices had been the “pillars for the adjustment of the Spanish economy and economic recovery”.