Spain tightens its belt just hours after news that our country left behind the recession to grow by 0.1% in GDP in the first quarter and generated almost 24,000 jobs in April. The English Prime Minister Jose Luis Rodriguez Zapatero, announced a series of measures to reduce the deficit public and thus fulfill the commitment as quickly placed in the 3% of GDP in 2013. The measures will promote the recovery to the extent we are able to reduce the financial interests that pay for the deficit and debt, and whose resources should be used to strengthen the recovery.
The Council of Ministers approved this week by executive order the austerity package but first must pass the exam in the extraordinary Ecofin meeting, convened by the English Presidency of the EU, which aims to put in place mechanisms for financial stability and preserve peace in Europe and in particular in the euro area. Europe must also make progress in regulating and supervision of the financial system and in particular on products and rating agencies, as well as speeding up work on crisis management.
The measures announced by the chief executive are part of the commitment of Member States to speed up or strengthen, where appropriate, their fiscal consolidation plans, enabling them to strengthen confidence in the economy and boost financial stability euro area so that all EU member states.
In the package of measures included reducing the salaries of public sector staff by 5% on average since June 2010 and frozen in 2011. Members of the Government while alltos charges will be reduced by 16%. 2011 was also suspended for the adjustment of pensions, excluding non-contributory minimum pensions and eliminated the transitional arrangements for partial retirement provisions of Law 40/2007. Another
cuts is to eliminate the benefit for the birth of 2,500 euros from January 1, 2011 and also stresses the need to reduce pharmacy costs by revising the price of drugs excluded from the reference price system .
addition, it eliminates the retroactive payment of dependency benefits to date of filing the application and is reduced by two a 6.045 million euros in state public investment, which we must add an additional saving of 1,200 million euros by the Autonomous Communities and local authorities.
For its part, Brussels has established a European stabilization mechanism that includes funding for more than 750,000 million for the states of the euro could fall in danger of insolvency, as has happened already to Greece.
With the new setting, Spain wants to cut the public deficit from 11.2% of GDP to 9.3% in 2010, reducing to 6% in 2011 to bring it below 3% threshold that marks the pact stability and growth in 2013.
The adjustment plan has had a wide response in Spain while in economic forums are welcomed because, as highlighted from Brussels and the IMF are in the right direction.
In this sense, the IMF maintains that if the debt does not return to levels before the economic crisis, potential growth in advanced economies could fall by 0.5% per year.
Speculation against the euro and the eurozone economic problems can be solved only by addressing the large gap between strong and weak economies in the euro zone.
For the Bank of Spain, the government's adjustment plan is a necessary decision, successful and positive for economic recovery and the stability and integrity of the monetary union, while ensuring that the undoubted costs to society will undoubtedly be offset by greater protection against the vulnerabilities created by the crisis and by a stronger position to face recovery. 
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