Spanish lawmakers barely approve austerity plan

Josep Antoni Duran y Lleida, who leads the Convergence and Union coalition, said he abstained and saved the government only out of a sense of duty to Spain.

“I don’t want Spain to be helped out like Greece,” Duran y Lleida said. But he added that Zapatero’s time was running out and joined the Popular Party in calling for early elections before those scheduled in 2012.

The emergency measures cut public sector wages an average of 5 percent beginning in June, froze the wages and then froze most retirement pensions in 2011.

On Wednesday, Zapatero said Spain would also introduce a new tax for the country’s highest-income earners, trying to stave off criticism that only low-income workers were being targeted by the cutbacks.

Earlier this week, lawmakers in both chambers cut their base salaries by 10 percent while municipal governments announced pay cuts up to 15 percent for mayors and other local officials.

Talk about a slim vote margin–read it all.

Posted in * Economics, Politics, * International News & Commentary, Economy, Europe, Politics in General, Spain