Spain Narrowly Approves Spending Cuts in Test of Prime Ministers Support

Razor thin majority piled pressure on Prime Minister Jose Luis Rodriguez Zapatero, who was forced to reject the traditional allies of the party by pushing through spending cuts and reforms in the labor market in Spain box markets could suffer a similar crisis Greece, but on a larger scale.
The Prime Minister has canceled the planned visit to Brazil on Thursday, because at the end of May deadline for the unions arose and businesses a broad social reform - a key demand policies on international markets.

The unions met on Thursday and warned that they will call a general strike if the government goes ahead changes in labor market rules without their consent, said a large gap between the reform of the enterprise.

On Thursday, however, the euro recovered some losses in the recent news that China would continue to buy assets in Europe as part of the strategy changes. Financial markets also reacted positively.