Spain freezes civil servant wages in 2014

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.

Friday’s announcement on wages came hours before the government was due to announce 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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