Monday 26 July 2010

Spain Austerity Plans

Spain says it will cancel or delay a fifth of planned public work projects as part of an austerity plan aimed at reining its bloated budget deficit.

Development Minister Jose Blanco said Thursday that of 1,116 approved infrastructure projects, 230 would be scrapped or delayed for one to four years.

The decision is part of the government's austerity plan to cut spending by euro15 billion ($19 billion) this year and next in a bid to slash the deficit from 11.2 percent of gross domestic product in 2009 to within the EU limit of 3 percent by 2013.

The government recognizes the measures may hamper economic recovery.

Labour unions and construction companies say the measures will not help ease Spain's soaring 20 percent unemployment problem.

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