Spanish PM Considers Easing Austerity

Spain’s prime minister José Luis Rodríguez Zapatero on Tuesday raised the possibility of reversing some of the harsh spending cuts announced in May, which helped restore confidence in the country’s economy. In a cautious announcement apparently aimed at testing the mood of financial markets, Mr Zapatero said the govt expected to restore some suspended infrastructure investments if – as the govt anticipated – renewed financial stability left room for manoeuvre in the 2011 budget. – FT

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