The Spanish defense ministry is renegotiating 26 billion euros in arms contracts that the ministry just cannot pay. This budget hole adds to the country’s troubled finances, as it tries to assure investors that it is safe. Up to now, the central government in Spain got good markets for its budget discipline and for the steps it took. The blame mostly fell on the regional autonomous governments, the “Comunidades”. But now also the federal government in Madrid has issues. According to El Pais, these contracts regarding tanks, fighter jets and frigates were made in the past and cannot be paid for now. These are weapons bought by the previous government in an ambitious plan to modernize the army. The high maintenance costs of these weapons weren’t taken into account, weighing on the defense budget. In addition, the army sold barracks in the good years of the real estate boom. Those days are gone and so is this source of income. Spain’s defense minister, Carme Chacon, was a possible candidate to replace PM Zapatero as head of the socialist party (PSOE). She withdrew from the race after the party severely lost the regional elections on May 22nd. Italy Struggling as Well Italy is also struggling with efforts to reduce its budget deficit. Finance minister Tremonti presented front loaded austerity measures. Anger is growing in Italy, as many people feel that these measures were dictated by the ECB. The debt crisis in Italy and Spain is far from over, despite the serious efforts made by Trichet to stabilize bond markets – efforts that the ECB was reluctant to do, but prove successful. Further reading: Euro printing Landing in Europe. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Other Forex Stuff share Read Next Greece Needs 50% Haircut – German Experts Yohay Elam 12 years The Spanish defense ministry is renegotiating 26 billion euros in arms contracts that the ministry just cannot pay. This budget hole adds to the country's troubled finances, as it tries to assure investors that it is safe. Up to now, the central government in Spain got good markets for its budget discipline and for the steps it took. The blame mostly fell on the regional autonomous governments, the "Comunidades". But now also the federal government in Madrid has issues. According to El Pais, these contracts regarding tanks, fighter jets and frigates were made in the past and cannot be paid… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.