bbc news with stewart macintosh.
the spanish cabinet has unveiled new spending cuts which it hopes will reduce the budget deficit by a total of 50 billion dollars, but at the same time officials said pensions will rise using money drawn from reserves. tom burridge reports from madrid.
the spanish government says the economy here is expected to remain in recession throughout next year, and it predicts unemployment will keep rising. it's in that context that three senior government ministers announced spain's budget for next year. it includes a cut to government department budgets of 12
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