Spain and Italy must 'follow through'

Both Spain and Italy "must follow through with adjustment plans that re-establish competitiveness, fiscal balance and maintain growth," International Monetary Fund Chief Economist Olivier Blanchard said on Tuesday. Blanchard said in Tokyo at the presentation of the IMF's twice-yearly World Economy Outlook that the two countries must be able to "recapitalize their banks without adding to their sovereign debt and be able to borrow at reasonable rates". European stock exchanges gained ground last week after the IMF voiced support for tax reforms in Italy, saying that the bill proposed in parliament would make a "significant improvement" to the country's tax system by streamlining and adding transparency.