Bank of Spain endorses ruling party as poll looms

Bank of Spain governor Luis Maria Linde has endorsed the Spanish government’s economic policies and warned of the risks of changing course as the country gears up for a general election.

Mr Linde, who is also a member of the ECB Governing Council, told the Spanish parliament in Madrid yesterday that changes to labour-market rules introduced by prime minister Mariano Rajoy have boosted the pace of job creation and that maintaining the government’s fiscal policies is crucial for economic growth.

“Doubts over whether the efforts in macroeconomic, fiscal and financial rebalancing will continue could put an end to or reverse the progress made,” Mr Linde said.