Spain as a way to reduce deficit, today approved the first public wage cut since 1978 while lowering the economic projections for next year as a result of the debt crisis in the nation, which is the third biggest in the nation.

It is projected that GDP will expand 1.3% next year which is lower than the previous 1.8% while the government also projects that the deficit will shrink 6% of GDP next year from the 11.2% of last year's GDP. Next month, the government is going to cut wages to 5%.