Zapatero only secures 2011 budget with support of regional parties

 

Spain's governing Socialist party has managed to get its austere budget for 2011 approved, but only after making concessions with two regional parties.

The deal will likely stave off early elections.

The tiny Canary Coalition, with just two seats, gave its support earlier today. Last week the six representatives of the Basque Nationalist Party gave their support.

The government, with 169 seats in the 350-seat lower house, has been isolated in recent months as parties criticized its handling of the economic crisis.

Failure to get the budget through would almost certainly have forced Prime Minister Jose Luis Rodriguez Zapatero to call early elections, not scheduled until 2012.

The budget cuts spending by nearly 8 percent to euro122 billion. It is expected to be approved late December.