Spain: Government cuts public sector pay

An austerity package introduced by the Spanish Government in May 2010 has cut public sector pay by 5% in 2010 and will freeze it in 2011. The Government also indicated in early June that it will act soon to reform the labour market if the social partners cannot agree on the subject.

The Socialist Government announced its emergency budget deficit-reduction package on 12 May 2010, and the implementing legislation was approved by Parliament on 27 May.