Spain: Minister proposes spending cuts

MADRID, March 31 (UPI) -- Spain must cut back on public spending to reduce the deficit and curb inflation, Economic Minister Pedro Solbes said Friday.

Solbes noted that rising global energy prices, coupled with domestic demand in Spain, could cause the country's economy to falter, El Mundo reported.

Public spending will rise over the next year, he said, but only in relation to Spain's gross domestic product.

Interests rates could also be on the rise to thwart rising inflation, said the minister.