MADRID, March 29 (Reuters) - The current political instability in Spain has a negative impact on the economic recovery and could impact on the government’s ability to approve long-term reforms, Bank of Spain’s governor Pablo Hernandez de Cos said on Monday. “In Spain, we are experiencing a political fragmentation process we are not used to, and it is important that we can deal with this situation and that it does not stop us from reaching agreements on reforms,” he said on Monday in an event held in Madrid by news agency Europa Press. (Reporting by Inti Landauro Editing by Emma Pinedo)