Cutting Deficits

Reform reports that...

Zapetero’s victory in Spain shows that a government can reduce deficits (according to the OECD, Spain is now running a 1.9 per cent surplus compared to Britain’s 2.9 per cent deficit) and command popular support. Spain has also reduced debt to 21 per cent of GDP. This compares with Britain’s 37 per cent debt, which is widely forecast to break the Sustainable Investment Rule (40 per cent).

Alistair Darling should pay a visit to Madrid and learn about fiscal conservatism...