Spain agrees deeper spending cuts

Spain has agreed to make deeper spending cuts to reduce its large deficit and calm markets worried it could be in line for a debt crisis like that of Greece, officials said today.

A finance ministry official says minister Elena Salgado agreed the cuts at Sunday’s emergency EU meeting in Brussels.

The official said that under the new programme, which involves €15bn in additional spending cuts, the deficit will be reduced to 9.3% this year, rather than 9.8% as originally forecast, and to 6.5% in 2011 instead of 7.5%.