If the Peoples' Party government had carried out the labor reforms that were approved in February, Spain would have spared itself from having to make even more wage cuts now.
The latest report from the European central bank advises that Spain make up for lost time and cut workers's wages again, a move that the country has put off making. Banks are butting heads with most of the labor unions, which just started to gear up for another strike in the autumn.
Despite the added pressure, the government needs to stay firm with the labor unions and make the cuts, however unpopular they are.