The government and opposition have agreed to pass a constitutional limit on public sector borrowing as parliament discussed further austerity measures designed to cut the deficit to 6% of economic output this year, compared to 9.2% in 2010.
The proposed constitutional amendment would require the government to maintain a balanced budget and would put a cap on the total amount of debts it could run up. Prime Minister Jose Luis Rodriguez Zapatero has already discussed the proposed borrowing limit with opposition leader Mariano Rajoy, whose Partido Popular intends to support it.
Mr Rajoy stated: “I think it should have been done already, and things would gave gone better for us.”
The constitutional amendment needs a 60% majority in both chambers of parliament, and can only pass with opposition support. It is expected to be passed ahead of elections due on November 20th.