Consultations will be held with the public before final cost-cutting decisions are made next year, he added.

BBC: Shropshire fire service 'must cut extra ?1.6m'

In France, Lionel Jospin's Socialist government is in the final stages of cutting the working week to 35 hours (see article).

ECONOMIST: The euro economy

The Japanese Prime Minister Yoshihiko Noda has said he will consult the business community before making a final decision on cutting any oil imports from Iran.

BBC: Iran oil sanctions divide Asia's four largest economies