Palma.—The Balearics faces another round of spending cuts after the Minister for the Economy, Cristobal Montoro, said that all those provinces which failed to meet their budget deficit targets would have to cutback even further.

The Balearic government has already been forced to make 634 million euros of cuts and this has involved closing hospitals and reducing the number of civil servants.

Now, yet more cuts maybe on the horizon.
But Balearic President Jose Ramon Bauza said that he was not concerned at the announcement and said that it did not represent any change to the economic route map which was already being followed by his government.

The Balearic President said that they would continue to reduce spending wherever possible. He said that his government would be in contact with the Minister to discuss spending targets. The Central administration in Madrid has come down hard on all provinces in Spain who overspend. Apart from the Balearics Cataluña is also in the firing line.

The central administration is battling to get Spain back on a firmer economic footing.