Post date: Aug 23, 2011 3:42:22 PM
Spain's Prime Minister Jose Luis Rodriguez Zapatero appears in parliament to defend his latest round of measures to save around 5 billion euros to shore up this year's deficit target.
SPAIN-AUSTERITY - Spain's politicans have cut short their holidays and return to parliament.
It was decided talks about how to dig the country out of debt couldn't wait any longer.
So, just three months from elections, Spanish Prime Minister Jose Luis Rodriguez Zapatero has outlined plans to change Spain's constitution ahead of the elections to include a debt cap.
JOSE LUIS RODRIGUEZ ZAPATERO, SPANISH PRIME MINISTER, SAYING
"It means a relevant step to strengthen the confidence in the shjO ISort and long term in the Spanish economy."
The opposition People's Party will support any constitutional change to cut spending, but says it should have come sooner.
LEADER OF THE OPPOSITION POPULAR PARTY, MARIANO RAJOY, SAYING
"I think this has to be done. Furthermore, had you done this before, we could be doing better now."
Last week Zapatero announced changes to the way medicines are bought to save 2.5 billion euros.
Spain is trying to convince markets that it won't eventually follow Greece and other euro zone countries in needing financial aid.
Zapatero aims to cut Spain's budget deficit to 6 percent of GDP, down from 9.2 percent in 2010.
He'll announce more measures on Friday.
Andrew Potter, Reuters