SPANISH EMPLOYERS WORRIED BY HIGH INTEREST RATESThe head of Spain's employers' federation, Jose Maria Cuevas, said employers were worried about the government's monetary policies because high real interest rates were hampering investment
    He told a news conference wage pacts signed so far this year were not endangering the government's five pct inflation target
The government's perceived need to control inflation by keeping a tight rein on credit was unnecessary, he said
    High real interest rates were attracting an influx of speculative foreign capital which was undercutting the government's target for monetary growth, Cuevas said
    Spain's most closely-watched measure of money supply, liquid assets in public hands, grew at an annualised rate of 17 pct in March, against 11.4 pct in December last year and a target range of 6.5 to 9.5 pct for 1987
    To combat this, the Bank of Spain has raised its call money rate 14 times so far this year, to 14.5 pct at present from 11.8 at end-1986
    Cuevas said employers were heeding the government's call to hold wage increases to its five pct inflation target this year, with increases from salary reviews awarded last year and new wage pacts averaging 5.6 pct in the first quarter of 1987
    These agreements covered less than 40 pct of Spanish workers, Cuevas said, with the rest still in wage negotiations
    He said Spain's current wave of strikes mainly affected the state sector, where the government is trying to impose its five pct wage ceiling
    Cuevas said employers were also worried about the trend in Spain's foreign trade balance
The trade deficit in the first two months of 1987 totalled 233 billion pesetas, a 68 pct increase over the corresponding period last year
    However, employers did not favour a devaluation of the peseta to correct the imbalance
 REUTER
