U.S. News

Spain to cut budget deficit by 15 bln eur to 2011


MADRID, May 10 (Reuters) - Spain will cut its budget deficit by a further 5 billion euros ($6.71 billion) in 2010 and 10 billion euros in 2011, a finance ministry spokesman said on Monday. The announcement followed media reports over the weekend that Spain would trim its budget deficit forecasts by 0.5 percent in 2010 and 1 percent in 2011 as eurozone countries seek to stem the spread of the Greek debt crisis. Spain's new deficit reduction targets now stand at 9.3 percent of GDP in 2010 and 6.5 percent in 2011, down from 11.2 percent in 2009. The spokesman said Prime Minister Jose Luis Rodriguez Zapatero would give more details on the planned cuts when he appears before parliament on Wednesday. (Reporting by Manuel Ruiz; writing by Jonathan Gleave,) a ($1=.7453 Euro) Keywords: SPAIN DEFICIT/ (jonathan.gleave@thomsonreuters.com; +34 91 585 2159; Reuters Messaging: jonathan.gleave.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.