Spain May Need Deeper Spending Cuts in 2012, Salgado Says

Spanish Finance Minister Elena Salgado said the nation might need to endure even deeper spending cuts next year than those approved by Parliament yesterday as it battles to stave off Europe’s debt crisis.

Lawmakers backed a limit on spending, the first stage of drafting next year’s budget, after Salgado said the 3.8 percent spending reduction laid out in the plan may have to be expanded by September when the government sends the budget bill to Parliament for approval.