The International Monetary Fund (IMF) has added Spain and the eurozone to a list of countries with relatively large economic imbalances.
Although Spain managed to solve some economic issues by imposing austerity measures, public debt continues to rise in the country, according to an IMF staff report released on Friday, Reuters reported.
The IMF also warned that economic powers have not done enough to address huge fiscal deficits in these countries.
“Further progress is needed on both internal and external rebalancing in a manner supportive of growth,” the IMF said.
In a report in 2011, the IMF said countries including, France, Germany, Japan, the United Kingdom and the United States, suffered from persistent imbalances.
Europe plunged into financial crisis in early 2008. Insolvency now threatens heavily debt-ridden countries such as Greece, Portugal, Italy, Ireland, and Spain.
The worsening debt crisis has forced EU governments to adopt harsh austerity measures and tough economic reforms, which have triggered massive demonstrations in many European countries.
Copyright: Press TV