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Spain government eyes further €30 billion in cuts

MADRID (MarketWatch) -- The Spanish government is planning a further 30 billion euros ($38 billion) in spending cuts and tax hikes, some of which could be announced next week, according to a report from Reuters on Wednesday. Citing sources familiar with the matter, the news agency said the multiyear program could involve hikes in sales and energy taxes, pension-system reforms, civil-servant pay cuts, toll-road hikes and bigger cuts in regional and government spending. "The idea is to cut the cost of the public service, freeze pensions, cut unemployment benefits," one source said. Reuters cited three other sources who it said had confirmed that such measures were under review but that specific decisions hadn't been made, while the total may fall below the €30 billion mark. The current plan is to bring debt to gross domestic product down to 5.3% in 2012 and 3% in 2013, from 8.9% in 2011.