Spanish King and Crown Prince take a pay cut

Spain's King and Crown Prince are taking pay cuts as part of the latest round of austerity measures meted out by the country's government as it attempts to control its deficit and increasing borrowing costs.

The salaries of King Juan Carlos and Crown Prince Felipe will be reduced by about 7 per cent – to €272,000 (£214,000) and €131,000 (£103,000) respectively – in line with the new austerity package, the Royal Palace announced yesterday.