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Reuters: FACTBOX-Austerity measures around the eurozone

June 22, 2010

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Reuters details the austerity measures adopted by eurozone governments in their efforts to stave off the contagion of the Greek debt crisis.

Here are some details of austerity measures implemented by governments around the eurozone as they battle to head off a spread of the debt crisis begun in Greece.

* SPAIN:

-- Spain's parliament on Tuesday ratified labour reforms aimed at reviving the euro zone's No. 4 economy, after the main opposition Popular Party said it would abstain.

-- The reform was introduced by decree last Thursday but Tuesday's ratification vote triggers a process that converts it into a bill which can be debated and amended by lawmakers. The process could take up to a year.

-- Economists said labour reform was a vital step to restoring long-term economic growth by easing the cost of hiring and firing, amongst the most expensive in the developed world, and making Spain's manufacturing industry more competitive.

-- Prime Minister Jose Luis Rodriguez Zapatero on May 12 announced fresh spending cuts totalling 15 billion euros in 2010 and 2011. Civil service salaries will be cut by 5 percent in 2010 and frozen in 2011, while more than 6 billion euros will be cut from public investment.

-- The cuts are aimed at speeding up fiscal consolidation and meeting Spain's new deficit targets of 9.3 percent of GDP in 2010 and 6 percent in 2011, compared to 11.2 percent in 2009.

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