Merkel says Spain is helping Europe emerge from crisis

German Chancellor Angela Merkel strolls with Spanish Prime Minister Mariano Rajoy near the German government's guesthouse in Meseberg some 60 km (37 miles) north of Berlin, Germany, August 31, 2015. REUTERS/Axel Schmidt

BERLIN (Reuters) - German Chancellor Angela Merkel praised Spain's reform efforts on Tuesday, saying the country was helping Europe gradually recover from its crisis.

"The situation on the labour market is still serious, but many new jobs are being created and thus Spain is contributing to Europe pulling itself out of the crisis step by step," Merkel told a news conference with Spanish Prime Minister Mariano Rajoy in Berlin.

(Reporting by Michelle Martin and Madelin Chambers; Writing by Caroline Copley)