Spain finds surprise €500m

Steve Dinneen
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TROUBLED Spain has received an unexpected boost after it discovered it had an extra €500m (£412m) to spend on its beleaguered infrastructure.

The nation, which has been forced to adopt strict austerity measures after massively overspending before the economic collapse, has raised its budget after making “internal adjustments”.

It has benefitted from better than expected market stability, allowing it to raise its annual budget to almost €7bn.

The extra money will be pumped into a number of projects that had been suspended due to the budget tightening.

The Spanish government says it will finalise 2011’s budget in six weeks and is still committed to slashing its deficit to six per cent of GDP, down from its current high of 11.2 per cent.