Once again dear friends

Unto the breach we go:

Spain's Socialist government is considering an increase in capital-gains tax as a result of the economic crisis but will not raise tax rates on earned income, José Luis Rodríguez Zapatero, prime minister, said on Monday.

Mr Zapatero and his cabinet have overseen a yawning budget deficit expected to reach 10 per cent of gross domestic product this year. They are now struggling to prepare a budget for 2010 in the face of falling revenues, higher state spending and resistance from the smaller political parties they need to pass laws in parliament.

Cuts in spending are never mentioned, contemplated or fathomed, even in the medium/long term. Of course, there is a bit of levity:

Mr Zapatero, who inherited a booming economy driven by construction and property development when he took office in 2004, has repeatedly told Spaniards that his governments have reduced the overall tax burden on the country and has said any increases will be "moderate and temporary".