In December 2010, Bank of Spain inspectors delivered a report to their bosses about Caja Madrid savings bank that was grim: The bank faced losses of almost 5 billion euros ($6.8 billion) and needed new leadership.
Spain’s deepest budget cuts in 30 years may be just the start of a U-turn by Prime Minister Jose Luis Rodriguez Zapatero that’s already sent his popularity plunging and prompted calls for a general strike.
Spain must overhaul its pension system, raising the retirement age and changing the way payments are calculated, Prime Minister Jose Luis Rodriguez Zapatero said, as the country tries to put its public finances in order.
Prime Minister Jose Luis Rodriguez Zapatero has three weeks to draft a budget that can unite Basques who want to split from Spain and investors skeptical he can tame the euro region’s third-largest budget deficit .
Spanish Prime Minister Jose Luis Rodriguez Zapatero called early elections as austerity measures erode support for his Socialist Party and the country seeks to convince investors it can control the budget deficit.
Spanish Prime Minister Jose Luis Rodriguez Zapatero won parliamentary approval for next year’s spending plan by four votes in the first phase of a battle over the 2011 budget that could decide the fate of his government.