The International Monetary Fund’s latest assessment of Spain’s economic situation will make uncomfortable reading for the country’s socialist government. Spain’s recovery is described as “weak and fragile” and the challenges ahead as “severe”.

As well as reforms to make the labour market more flexible, and consolidation in the country's banking sector - such as the four-way merger agreed last week between Caja de Ahorros del Mediterraneo, Grupo Cajastur, Caja de Ahorros de Santander y Cantabria and Caja de Ahorros y Monte de Piedad de Extremadura - the IMF also recommended "bold pensions reforms".