MALLORCA TODAY - Massive deficit cut planned by Spanish Government

The general strike and the Andalucía election out of the way and the Spanish Government has announced its anticipated next round of austerity measures. It hopes to be able to cut by 2.5% the public deficit through a cut in spending of 27 billion euros. The axe is falling on government departments, energy and tourism losing 32% of its budget, development (which includes transport and roads) 34.6%, and the largest in overseas affairs and co-operation, 54.4%. There are to be no changes to IVA (value added tax) but company taxes will rise.