This is very encouraging news to see Spain taking their budget cuts seriously. While austerity isn’t going to be a magic potion to resolve the Euro’s problems, it does maintain the credibility of the efforts made in the last year for each country to get their houses in order. The last couple of years Greece made a mockery of the EU through missing their budgetary projections, and then having to be forced into taking more substantive action. Italy under the leadership of Monti has been an inspiration for Europe through his aggressive and proactive course. For the global economy to continue to recover we need politicians to build confidence that they will not hurt the economy as the invariably did on a global basis through their actions in 2011.