Spain Tightens Belt as Air Traffic Controller Strikes Tie-up Travel

While the announcement of the planned austerity measures were made on Wednesday and the approval on Friday helped Spain’s bond sale to be successful, the unexpected sickout was seen as an embarrassment for Zapatero. Controllers, according to Deputy Prime Minister Alfredo Perez Rubalcaba, will work through the Christmas holidays under military supervision during a 15-day state of emergency.

Spain has gone in less than three years from its position as Europe’s top creator of jobs to being the unemployment champion of the euro zone, with a rate of nearly 20%. The government has announced that it will not only sell a stake in the airports to raise a hoped-for 9 billion euros, but will also cut jobless benefits and sell its stake in the lottery. It has already frozen pensions and cut civil sector pay, and made it both cheaper and easier for companies to lay off employees. The government’s support is now at its lowest level since the country became democratic.