Barcelona cuts back to save finances

25 July 2012 Last updated at 05:23 ET Help

The state of the Spanish economy continues to send fear through the financial markets.

Spain's Economy Minister, Luis de Guindos, will hold talks with his French counterpart in Paris later.

This as Spain and Germany try to play down speculation of a bailout, not just for ailing banks, but for the whole country.

Gavin Hewitt reports from Barcelona.

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