Tuesday, August 09, 2011

OPPOSITION, analysts skeptical on fresh Spain cuts:
Economists and Spain's main opposition party cast doubt on Monday on government pledges to come up with new measures to reduce the budget deficit this month as the country heads for November elections.

Under pressure to take more steps to cut a deficit that has put Spain at the heart of Europe's debt crisis, Economy Minister Elena Salgado on Sunday said the government would use an August 19 cabinet meeting to outline further savings.

Salgado did not give details except to say that 2.5 billion euros of savings could be made through changes to the methodology for large companies' tax payments.

That change -- together with a plan to save an estimated 2.4 billion euros in drugs costs for regional governments through a new bill on generic medicines -- add up to a deficit reduction of half a percent of GDP.