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UK treasury chief George Osborne unveiled the austerity budget on Tuesday (Photo: HM Treasury)

UK and Spain enforce austerity plans despite US concerns

The UK government announced its toughest budget in a generation on Tuesday (22 June), while the Spanish parliament approved a package of labour market reforms it says will reduce the country's high level of unemployment.

At the same time, German Chancellor Angela Merkel on Tuesday said she had spoken with US President Barack Obama, telling him that Europe would push ahead with its austerity plans, despite US concerns this could slow global growth.

"Yesterday, during a phone call...

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UK treasury chief George Osborne unveiled the austerity budget on Tuesday (Photo: HM Treasury)

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