London.An economic think-tank (CRE) led by Antoni Riera made the gloomy forecast yesterday. Riera said that the Balearic government had plenty to do to get the local economy back on track. He called for further massive cuts in government spending. I feel that the government should be reducing their costs far more, he said. Balearic President Jose Ramon Bauza has already come under fire in some quarters for his major spending cuts. Earlier this month the director of the Emergency and Accident department at the new Son Espases hospital resigned over government cuts. Teachers and civil servants are also poised to join the wave of industrial action which is being planned.