Spanish business grows impatient for reforms / Spain stops new energy subsidies in austerity drive

Article suggests that after years of decrying as incompetent the former Socialist government of José Luis Rodríguez Zapatero, Spain’s business leaders and fund managers are having in January 2012 their first twinges of doubt about the Popular party administration they elected in November 2011 to replace it.

The new government's reform programme, to be announced in detail in February 2012, would come in three main parts.

1. Austerity and deficit control
2. Measures to reform the labour market and collective bargaining
3. Reform of the banking sector.

Separately, it was announced on the 27 January 2012 that Spain had suspended subsidies for all new power plants using renewable energy and unveiled a draft law to cut public sector deficits to zero within eight years and reduce government debt. The central government warned regional authorities that it would intervene in their financial affairs if they failed to meet deficit targets

Deutsche Welle, 26.1.12: Top marks from Merkel for Spain's Rajoy http://www.dw-world.de/dw/article/0,,15694058,00.html

El País, 26.1.12: Merkel praises Rajoy's austerity but deficit flexibility is ignored http://www.elpais.com/articulo/english/Merkel/praises/Rajoy/s/austerity/but/deficit/flexibility/is/ignored/elpepueng/20120126elpeng_20/Ten

El País, 27.1.12: Profligate Spanish regions face EU Greek-style EU intervention http://www.elpais.com/articulo/english/Profligate/Spanish/regions/face/EU/Greek-style/EU/intervention/elpepueng/20120127elpeng_7/Ten

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