WITH ITS AUSTERITY PLAN, Spain is simply shifting its debt problem. I'd hold the presses to see what the Zapatero government actually passes in today's weekly cabinet meeting, though. It's a well-known fact that Zapatero promises and doesn't always deliver if he is contested by the unions, as is now the case, and as it was with labor reform, delaying the retirement age, and previous austerity measures. The last time, a few weeks ago, the government announced big savings plan contemplating major bureacratic restructuring. When they passed it, it meant the administration would save... €16 million. Ridiculous, considering this year deficit will be more that €100 billion.

UPDATE. Lo and behold: I just heard on the radio that, even though Zapatero said the government would pass those measures in today's weekly cabinet meeting, it won't. He's called for a special cabinet meeting on Thursday next week [ADDED: link in Spanish]. We'll see if it gets pushed back again.