Spain freezes civil servant wages in 2014

Spain freezes civil servants' wages in 2014, but set to revise growth forecast upward

Associated Press
Spain raises forecasts, but recovery to be slow
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A neighbour caresses Maria Isabel Ferrer Rodriguez, 8, as she feeds her dog surrounded by furniture outside the apartment the day after her family got evicted in Madrid, Spain, Thursday, Sept. 26, 2013. Maria Isabel Ferrer Rodriguez and her family members, unemployed, some on state benefits for the disabled, has been living in the apartment of the State City Hall Housing Company (EMVS) for 24 years. EMVS informed them that they have to move out. The eviction was executed despite of the resistance of dozens of Victims' Mortgage Platform (PAH) and they are now sleeping outside. (AP Photo/Andres Kudacki)

MADRID (AP) -- Spain says it will freeze civil servants' wages again in 2014 in an attempt to cut public debt.

The government has been cutting expenses for three years as it seeks to cope with the costs of a recession and bank bailouts.

The wage announcement came hours before the government was due to announce Friday its 2014 budget plans, together with a small improvement to its economic growth and unemployment forecasts.

The government is expected to officially raise its growth forecast for 2014 to 0.7 percent from the 0.5 percent it had predicted in April. The unemployment forecast is expected to be trimmed from 26.7 percent. The rate is currently 26.3 percent.

Changes to the how yearly pensions increases are set are also likely to be announced in the budget.

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