Spanish Business News

Spain said on Wednesday it would restore €500m cut from the state infrastructure investment budget for next year in a slight easing of its austerity plans, but would fulfil its promises to keep cutting the annual budget deficit in line with agreed targets.

Elena Salgado, finance minister, made the announcement in Madrid at a joint news conference with José Blanco, the public works minister.

“More than 50 projects will benefit in 2011 as a result of these additional resources,” Mr Blanco said. He added that most of the country’s 17 autonomous regions would benefit and that one priority was the development of the A8 motorway linking northern Spain to France and the rest of Europe.

Cuts of €6.4bn in public sector investment were among the most severe austerity measures announced by the Spanish government as a result of the global economic crisis.

Read the full article at FT.com