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Zapatero warns of more budget cuts for Spain

After its World Cup victory Spain has come back down to earth with a thud.

The Spanish Prime Minister, Jose Luis Rodriguez Zapatero, warns more budget cuts are needed to restore confidence in Spain on financial markets and return the country to economic growth.

In an annual address to parliament, he also said the pension age would have to rise.

Sarah Rainsford reports.

  • 14 Jul 2010
  • From the section Europe