27 May, 2010 @ 13:26
1 min read

Zapatero’s cuts passed in knife-edge vote

SPAIN’S controversial austerity bill has been approved – by just one vote.

In a knife-edge decision, 169 voted in favour of the 15bn-euro package with 168 in opposition.

PM Jose Luis Zapatero unveiled the drastic plans last month to counteract fears Spain was heading for a Greek-style economic crisis.

The proposal – which include wage cuts of five per cent for civil servants and huge public investment cuts – had been met with widespread criticism.

Trade unions have already announced a one-day strike due to take place on June 8 to protest against the projected wage cuts.

A parliamentary defeat for Zapatero would have been an extremely damaging blow for his Socialist government.

“The result is calming for the markets because a vote against would have been very worrying,” said Jose Luis Martinez, a strategist at Citigroup.

“But the small margin is worrying considering what Spain is facing.”

It is hoped the bill will reduce the country’s 11 per cent GDP deficit to six per cent by 2011.

Jon Clarke (Publisher & Editor)

Jon Clarke is a Londoner who worked at the Daily Mail and Mail on Sunday as an investigative journalist before moving permanently to Spain in 2003 where he helped set up the Olive Press. He is the author of three books; Costa Killer, Dining Secrets of Andalucia and My Search for Madeleine.

Do you have a story? Contact [email protected]

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Story

It all began with a German!

Next Story

Amy: Mystery theft in Spain

Latest from Business & Finance

Go toTop

More From The Olive Press