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

MADRID – 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.

(Reporting by Carlos Ruano; Writing by Nigel Davies)