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Businessweek Archives

More Troubles For Gonzalez


International Outlook: GLOBAL WRAPUP

MORE TROUBLES FOR GONZALEZ

Spain's securities markets and the peseta fell, after a Catalan faction withdrew its support for Felipe Gonzlez' Socialist government. The move raises questions about whether Gonzlez can get his austerity budget through the parliament. He wants to cut the deficit from the current 5.9% of gross domestic product to 4.4% to prepare for possible European Monetary Union. Gonzlez, who has been damaged by recent corruption scandals, is threatening to call elections in early 1996--a move that could bring the Socialists' downfall.EDITED BY STANLEY REED


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