NYTIMES/ Spain's regional banks are rapidly failing. And the government's lack of progress tackling banking problems undermines its huge deficits arising from 20% unemployment and recession. “A year ago, the government didn’t even want to think about reforms. Now, under pressure from financial markets, they are at least talking about reforms. But the government really needs to get going,” claims an analyst.
José PM Luis Rodríguez Zapatero's austerity plan doeasn't begin until next year and includes spending cuts of about only 2.5 percent of GDP.
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