This year will be decisive. First, further cuts to public investment will be difficult. It has been reduced by about 60 percent since the start of the crisis and there is little room for extra contraction. Second, because of convoluted legislation, the regions -- which pay for most of the expenditures related to public health and education -- will see no changes in their revenues. Hence large reductions on current expenditures are going to be needed if promises about the deficit are to be fulfilled. Third, protests will probably increase in size as a result of unavoidable cuts in health and education.
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