THE TELEGRAPH: Spain will slash public spending by €6bn and cut civil servants' by 5pc salaries [sic] this year as part of a plan to ease fears the country could slide into a debt crisis like that of Greece.
Jose Luis Rodriguez Zapatero, the prime minister, on Wednesday outlined a series of measures that will include a suspension in automatic increases to retirement pensions, a drop in overseas aid and a reduction in government investment.
He said 13,000 civil service jobs would be cut in 2010, with public sector wages frozen in 2011.
Mr Zapatero was fleshing out the details of a €15bn plan announced on Sunday for deeper spending cuts to reduce Spain's deficit from 11.2pc of GDP last year to 9.3pc in 2010, and eventually to 3pc in 2013. >>> | Wednesday, May 12, 2010