Factbox: Spanish media comment on austerity measures

(BestGrowthStock) – Spain will cut wages of state employees and slash investment spending, sparking union anger at the government’s toughest moves yet to rein in a budget deficit some feared could ignite a bigger version of the Greek crisis.

Following are extracts from Spanish newspapers on Thursday:

EL PAIS

Zapatero sacrifices social welfare policy with toughest ever austerity measures in Spain’s recent history.

While some of the measures are painful, particularly the freeze on pension increases in 2011, they are neither illogical or unjust. And the unions must not now muddy the waters with demonstrations or strikes.”

EL MUNDO

The flight from reality is over for Spain’s Prime Minister Jose Luis Rodriguez Zapatero who has been forced to make a 130 degree turn in his social welfare policy.

But his reaction to the crisis is too late and will have an enormous political cost for the PM.

EXPANSION

Spain Prime Minister Jose Luis Rodriguez Zapatero, pressured by Obama and the EU, renounces his social dogma and begins to cut public sector costs.

This is a reality check for Zapatero, but it is just a first step. The next priority is labor market reform, and if the parties involved can’t reach an agreement, then the government has to force the reform through parliament.

CINCO DIAS

Whether he was under pressure from the EU or the U.S. or the financial markets, or a combination of all three, Spain Prime Minister Jose Luis Rodriguez Zapatero woke up and smelt the coffee on Wednesday and announced a series of austerity measures which would have been unthinkable even a couple of weeks ago. But after this budget cutting, what is needed now are structural reforms, particularly a reform of the financial sector.

Investing

(Reporting by Judy MacInnes; editing by Maria Golovnina)

Factbox: Spanish media comment on austerity measures