TIGHTER BELT: Spain faced more pressure Tuesday to enact austerity measures, after data showed public finances in 2011 were in worse shape than thought.
MISSED FORECAST: The government said 2011 budget deficit was 8.5 percent of national income. That's lower than the 2010 equivalent of 9.3 percent but higher than the 8 percent that the new conservative government forecast.
RECESSION LOOMS: The government has already enacted $20 billion in spending cuts and tax hikes, even though the economy shrank in the fourth quarter and may in this quarter too. That would drag Spain back into a recession.
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