News coming from Spain of further proposed budget cuts in order to reduce the deficit. Timing would seem to be important, following on from the announcement of the 750bn euro bailout fund. I guess the eurozone wants Spain to be making promises of cuts, before the EU has to insist on levels of cuts, like they did with Greece. If Spain was caught dawdling in the wake of the bailout fund, then I think the markets woud punish them and send the shit into the fan, with borrowing costs going through the roof. Even Mr Obama has put his oar in, commenting specifically on Spain, and making a clear point that the US is taking careful note of happenings in Europe.
Quite what Mr Zapatero is going to do is another thing - spening cuts - which must include the loss of civil service lackeys, when the unemployment rate is already 20%, is going to hurt