Spain to announce more measures against deficit

Spain's new treasury minister Cristobal Montoro said on Monday that the government would announc further measures against public deficit following the third cabinet meeting on Thursday. Last Friday's cabinet meeting approved a series of measures, which included a freeze on civil service pay and a 2.5-hour extension for the working week of public servants, along with generalized spending cuts and increases in income tax. Economy Minister, Luis de Guindos said on Monday the deficit for 2011 was possibly slightly over 8 percent, rather than the 6 percent that government had expected, which has made it necessary for further "radical measures." Montoro admitted that some measure were taken to satisfy partners in the European Union and to avoid further pressure on Spain's risk premium.