EU: Spanish banking reforms on track

6 March 2013

The ongoing overhaul of the Spanish banking industry is still on course, a new official report has concluded.

Following the second review of the country's progress carried out between 28 January and 1 February, the European Commission (EC), European Central Bank, European Stability Mechanism and the European Banking Authority insisted the programme "remains on track".

Due to the progress made by financiers in the embattled eurozone member state, the bodies do not expect institutions to need more than the €41.4 billion ($53 billion) they have already received in aid.

However, despite this positivity, the report insisted work still needs to be done to rebalance the nation's financial system and called on the government to implement further reforms, such as increasing fuel tax.

"Overall, the reform momentum needs to be preserved as risks to the economy and the financial sector remain high," the EC noted.

The next review of the state's banking sector is scheduled to take place in May.

By Claire Archer

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