Out on a limb

21 April 2009 By Fiona Maharg-Bravo

The Banco de España didn t prevent a housing bubble, but it did keep Spanish banks out of foreign debt sludge. Now its governor is taking flack for speaking out on pension and labour reform. He should be praised and more independent central bankers should follow his example.

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The Spanish government has accused Miguel Angel Fernández Ordóñez, the governor of the Bank of Spain, of being alarmist about the Spanish pension system. Ordóñez warned that the social security system could fall into deficit with in a year, and that the system needed reform.

Ordoñez has earlier clashed with the government over economic policy. He has called for control of public spending and the introduction of reforms to make Spanish labour more competitive, as well measures to help rescue the country's savings banks.

The Bank of Spain is autonomous from the government. Ordóñez is a Socialist and was formerly a senior government official.

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