Europe opening calls were flat Friday in the last trading day of 2011 as positive data from the US allayed fears about the global economy.
The FTSE is seen higher by 6 points, the DAX by 7 points and the CAC higher by 8 points as the thin trade which has characterized this week is set to continue.
Spanish media reports suggest the Spanish government is seeking cuts of 30 percent in current public expenditure to around 8 billion euros ($10.4 billion).
The Spanish newspaper Expansion reports that cuts are also being sought in the public works budget and expects these first austerity measures to be approved at a cabinet meeting Friday.
China continued to be a concern for investors as data from the HSBC Purchasing Managers Index revealed that factory activity shrank in December and the economy is on track for the fourth successive quarter of slowdown.
China also announced plans for a manned mission to the moon as it seeks to intensify its space exploration program.