In an effort to reach agreed defecit targets with the European Commission, Spain has agreed to cut it's budget this year by Euro 37 billion with public sector costs coming heavily under the cosh.

Whether this is enough to reduce the GDP defecit to the agreed level of 5.3% from 8.5% this year remains to be seen, though many Eurozone watchers think that the current cuts may not be enough.

With the Eurozone firewall or bailout fund, now containing promises from various sources that puts around Euro 700 billion in the war chest, life in the Eurozone is more stable than it was last year and this reflects in the lack of wild swings in the Equity market.