Publication

The decision to cut budget spending announced by Prime Minister José Luis Zapatero on 12 May is part of the EU’s plan for stabilization of the financial situation in the Eurozone and will help to increase the credibility of Spain and the EU, and calm the mood on the markets. Whether this situation can be maintained will depend however on Spain’s plan being put into action, and also upon completion of changes in those Eurozone countries that are facing serious difficulties with their public finances (Portugal, Spain, Italy and others).