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Palma.—Yesterday, Palma was the scene of just one of many demonstrations against the government's moves to launch a fast-track debate on a hotly protested reform of the constitution to cap future budget deficits.

The decision has been praised by European neighbours and the markets, but it appears that most Spaniards are against the constitution being reformed without their consent.

Union leaders have accused the struggling Socialist government of being dictated to by the European Central Bank and they are demanding that a public referendum on constitutional reform be held on November 20, the day of the forthcoming general elections.

However, it appears that November may be too late.
On Tuesday, Spanish lawmakers voted overwhelmingly to launch the fast-track debate.
The crushing vote, with 319 in favour and only 17 against, all but guaranteed it will get the three-fifths minimum support required to change Spain's constitution.

The ruling Socialist party and main opposition conservative Partido Popular bridged bitter rivalry to back the proposed reform, an unexpected accord ahead of the general elections.

Under the constitutional change, Spain must stick to a deficit cap except in times of natural disaster, recession, or extraordinary emergencies and even then only with approval of the lower house.

Referendum
An accompanying law to be enacted by June 30 next year would set the actual figure for the structural deficit -- 0.4 percent of annual gross domestic product (GDP) from 2020. “We have to take a coherent and forceful decision to strengthen our country's solvency,” said the Socialists' parliamentary spokesman Jose Antonio Alonso.

Spain's borrowing costs on the debt markets were too high considering its economic strengths, Alonso said. “We are a reliable country in the payment of our debts and there should be no doubt about it,” he said.

The reform - only the second change to the constitution since it was drawn up in 1978 three years after General Francisco Franco's death - could clear the lower house by as early as tomorrow.

It would then go to the upper house Senate next week.
If approved by the Senate, there is a 15-day waiting period during which lawmakers can force a referendum if they can muster 10 percent support from either house of parliament.

Slogans such as -- “No to the constitution change. No to the diktat of the markets” -- were brandished across the country yesterday.
The country's biggest unions have joined with citizens' groups to call for a “major demonstration” in Madrid on September 6.
Slash
French President Nicolas Sarkozy and German Chancellor Angela Merkel earlier this month called on eurozone countries to adopt a ‘golden rule' from 2012 requiring governments to balance their budgets.

Spain is seeking to slash the public deficit to 6.0 percent of GDP by the end of the year from 9.2 percent in 2010. It aims to reach the EU-target of 3.0 percent by 2013.