Incoming Spanish Government will cut Defense spending and invest more in Education and Housing policies.

According to El Pais, Jose Bono, the incoming defense minister, has called for a significant cut in arms spending. The money saved will be used to fund the new Socialist government's policies on housing and education. Bono last week criticised the decision of the outgoing PP defense minister, Federico Trillo, to push through last minute orders this month for arms and military vehicles and vessels worth 4 billion euros.

One of the new features of Spain's Socialist Government due to take power this week, is the creation of a new Housing Ministry. Despite the creation of new areas within the government, the Socialists remain committed to reducing the overall number of government posts. Aznar's outgoing government is made up of almost 2.000 senior posts, including ministers, secretaries of state, under secretaries, delegates and general secretaries, director generals, advisors and vice-directors. According to the PSOE, between 1997 and 2004, the administration increased spending in senior posts by 43 precent. One of the most immediate priorities of Spain's new government is to cut back on the number of these posts.