• The Spanish government says its 2011 deficit will be around 8% vs 6% target
  • The govt will continue to freeze public sector spending, deputy PM
  • Will temporarily raise some taxes
  • Will raise taxes for high earners for next two years
  • State pensions will rise 1%, in line with inflation

Austerity is killing growth, which will hurt revenue, which will force more austerity … around we go