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Spain details austerity plan to cut deficit

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Spain details austerity plan to cut deficit

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Spain’s parliament has been hearing the details of new austerity measures to reduce the recession-ravaged country’s budget deficit.

Socialist Prime Minister Jose Luis Rodriguez Zapatero outlined his plans including lowering civil servants’ salaries by an average of five per cent.

He has been under pressure to take radical steps, especially since an emergency EU aid package for weak euro zone members was announced this week.

The Spanish spending cuts are aimed at reassuring financial markets, amid fears Spain could enter a debt spiral like Greece.