Spanish Austerity

BBC News: Reports that the new Spanish Government has announced cuts of 8.9 billion Euros, also a freeze in Government hiring with the addition of tax hikes for wealthy of Spain. The question on the minds of the bond market is can Italy and Spain meet their needs without getting a bailout from the EU. The austerity packages of Italy and Spain will cut the public sector, this means that welfare should raise, Ireland has seen its economy retract after its austerity plan, so how are the Eurozone Countries going to develop a plan for growth, this is the only way to reduce the debt within these Countries. Thus far the EU has failed to develop a growth plan, that is the one thing the Shadow Chancellor of the Exchequer Ed Balls has gotten right, all this austerity will reduce government spending, will reduce the debt, the idea that more spending would help is crazy, that is the Labour Plan. The EU could be another Japan folks, years of austerity and no growth, welcome to the New Year folks.