Spanish labour minister resigns

Spain's labour minister Celestino Corbacho will quit his post to help the ruling Socialist party's (PSOE) campaign in regional elections in Catalonia, officials said yesterday.

Prime Minister Zapatero faces tough challenges in regional elections this year and next, seen as a test of support for the PSOE. "The PSOE electoral commmittee will possibly name Corbacho in the candidate lists for the Catalonian elections and he will leave the ministry" a ministry spokesman said.

No replacement has been named. Zapatero, whose term ends in 2012, has imposed deep cuts and a labour reform this year in an attempt to cut the soaring cost of borrowing and reassure investors Spain will not suffer a Greek-style debt crisis.

Catalonia, Spain's most populous autonomous region and home to Spain's second city Barcelona, will probably hold elections in November, though a date has not yet been set.

The Labour Ministry would not say when Corbacho will stand down, but there were reports it would probably be early next month, after a general strike set for 29 September.

In a recent poll the opposition People's Party had an eight point lead over the Socialists.