Spain central bank says big spending cuts unlikely in case of rescue

Reuters

Spain's central bank governor Luis Maria Linde said on Thursday that any possible rescue package for Spain would likely not imply big additional spending adjustments for the government.

Speaking in a parliamentary hearing he also said that an increase in pension payments in line with inflation would pose a problem for the country meeting its public deficit targets this year.

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(Reporting by Carlos Ruano; Writing by Nigel Davies)