Political instability breeds economic unrest. In Spain, the situation in Asturias recalls Greece and how struggles in forming a government can result in grave economic crisis.
At this day in time the principality of Asturias lacks a sufficient reform plan and runs the risk of not meeting its deficit goal. The Ministry of Finance issued yesterday an ultimatum that set grounds for an intervention, which had its intended effect and sealed a pact between the Spanish Socialist Workers' Party, the United Left and the Union Progress and Democracy parties.
Montoro also warned Andalusia that he would not allow any deviation from the budget cutback plan so that the region could meet its deficit objective.
With cutback finalized and approved, the Spanish government wants its regional government accounts to be viewed as stable within fifteen days.
