Several Infrastructure projects cancelled across Spain

The Ministry of development has announced that it is to delay construction of 199 major public works projects, with 32 of them being cancelled altogether. These projects are worth a total of € 6.4 billion and amount to 20% of the contracts under the Ministry's control. They are just a small part of Spain's attempts to reduce spending as part of the government's auterity drive.

Development Minister Jose Blanco stressed that spending on public infrastructure would continue at pre-bust levels, regardless of the announced cancelled projects.

Spain's stimulus spending plan includes a 'Special Infrastructure Plan', which will be untouched by the current round of cuts. This year it includes some € 5,57 billion for infrastructure work.

As a result, the Minister said infrastructure spending form 2009 to 2012 will stay around the annual average of € 14 billion send from 2005 to 2008. He added that this was above the average of € 8,4 billion seen from 2000 to 2003.

The cuts being made will hit the rail and road sector and infrastructure projects in the air and maritime segments will not be affected. Mr Blanco said that although the cuts were, "Severe and necessary" they would, "Contribute to the sustainability of our public accounts and budgetary stability."