Spain slashes economic forecasts
Spain has slashed its economic forecasts and said it will take two years longer than promised to cut its swollen deficit in an acknowledgement that its harsh austerity measures had failed to bring its finances under control.
The Spanish Government has officially admitted the depth of the recession and announced that they expect a 3.6% reduction in GDP It's quite a change from the previous forecast of 1.6% and came also with the announcement that the long period of reduced taxes is at an end.