Spain to close 27 public companies while public debt rises

The Spanish government was Friday expected to announce the closure of 27 public companies as part of its attempts to trim the budget deficit, as the country's public debt rose to record levels, according to dpa. The companies to be shut down include the Public Renting Society, which acts as an intermediary between potential landlords and tenants, and the lottery company SEVLAE, according to media reports. The government was also expected to wrap up earlier proceedings to eliminate 14 others from a total of 140 public companies. Spain is trying to cut its budget deficit from 8.5 per cent of gross domestic product in 2011 to the 5.3 per cent agreed with the European Union. Spanish public debt rose by 14.2 per cent to 68.5 per cent of GDP in 2011, well above the European Union limit of 60 per cent, the Bank of Spain said Friday. In that total, debts run by Spain's 17 semi-autonomous communities increased by 17.3 per cent to 13.1 per cent of GDP.