"Talk of consolidation is just an avoidance action by the state so they can avoid the real problem of state mandates, " said Peter Baynes of the New York Conference of Mayors.

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There has been discussion of combinations and consolidation, including among the managements of the companies, but little action.

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Despite a slow start, there is now a clear track record of policy action in Spain which encompasses not only fiscal consolidation but also labor market and pension reforms as well as recapitalization of the weak parts of the banking sector.

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