* In order to avoid the fate of Greece, the government in Madrid announced drastic measures to cut public spending

* Newspapers say that Spain might need to take out a loan of EUR 280 billion

Spain in on the edge of social unrest.

Citizens are extremely unhappy with the drastic measures announced by the Government in order to lower the budget deficit.

Fearing Spain would suffer a fate similar to that of Greece, the government in Madrid announced a new set of measures intended to cut the budget deficit for 2010 and 2011, the reduction of the budget by EUR 15 billion.

The measures announced by the leader of the government, Jose Luis Rodriguez Zapatero, could be accompanies by a hike in taxes, according to the Spanish press.

The amount seems shocking, but the Spanish government is decided to "take the bull by the horns" and to adjust its public expenses in order to avoid the economic collapse.

What is at stake is not just the macroeconomic stability of Spain, but that of the European Union itself, in particular of the Eurozone. Foreign pressure to begin reforms are extremely strong, from the EU and the US alike.

All of the above would be complemented by a record loan from the IMF, amounting to 280 billion Euros. French journalists of "La Tribune" announced, quoting official sources, that the Spanish government and IMF officials are secretly discussing a loan. The news was not officially confirmed.

* Nine measures to avoid the fate of Greece

The nine measures announced by the Spanish government, which also consist of cutting public expenses, as well as cutting investments, are harsh, but extremely necessary, Spanish experts say.

Wages of public sector workers would be cut by 5% in the second half of the year and frozen next year, which the government expects would save 4.1 billion Euros.

Pensions