EU, Rehn: Spain should reduce salaries by 10%

European Commissioner for Economic and Monetary Affairs Olli Rehn said in an article published on his blog that Spain should reduce salaries by 10%, as the International Monetary Fund suggested last week amid an agreement between trade unions and employers.

The pay cut would help boost hiring and lower inflation, stimulating consumption. Rehn suggested that in this respect Spain should follow the example of Ireland and Latvia.