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Spanish Senate Committee Vetoes Budget, Setting Up Second Vote

The Spanish Senate’s budget committee vetoed the 2011 budget law, indicating the upper house will send the law back to the lower chamber for a final vote.

The Senate will vote on the law on Dec. 13, a spokesman said in Madrid today. The lower house, where Prime Minister Jose Luis Rodriguez Zapatero has forged a majority from alliances with two other parties, can lift a Senate veto without changing the legislation.

The 2011 budget is the most austere in at least three decades as the Socialist government tries to cut the budget deficit from 11 percent of gross domestic product last year, the third-largest in the euro region, to 6 percent in 2011.

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