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Spain strikes 'grand social pact' for economy overhaul


Government, labour unions and business groups in Spain have struck a "grand social pact" to allow for an overhaul to boost the economy.
The agreement was widely expected after the three agreed on Friday to raise the compulsory retirement age from 65 to 67, one of the highest in Europe.
It is expected that some changes will be announced this week.
Collective bargaining, the energy market, and research and development are areas likely to be addressed.
Spain is struggling to revive its economy, the fifth-largest in the EU, and avoid an international bail-out like those in Greece and the Irish Republic.
In some good news on Monday, the government forecast that the contraction of the economy in 2010 might be limited to 0.2%.
A decline of 0.3% had originally been predicted for the year.
But consumer prices rose by 3% year on year in January, preliminary data from the National Statistics Institute showed on Monday.
Fuelled by price rises in electricity, food and non-alcoholic drinks, the figure was slightly above the 2.9% rise in harmonised prices for December.