A round-up of public finance news stories from Europe you might have missed this week (June 10–14).

Putin demands growth to underpin social spending

The Russian government must use its budget revenues more carefully and avoid any increases in social spending not supported by economic growth, President Vladimir Putin said in his annual budget address. ‘We have no more effective way of solving social issues than ensuring economic growth rates. That is why our policy priority has always been, and will always be, the improvement of the living standards of Russian citizens,’ he said. (RIA Novosti, Russia)

Spanish austerity cuts ‘are putting lives at risk'

Austerity cuts in Spain could lead to the effective dismantling of large parts of its health care system and significantly damage the health of the population, according to a study. Researchers who analysed the situation warned that if nothing was done to reverse the trend, Spain risked spiralling health problems and increases in infectious diseases. (Reuters)

Serbia to curb budget gap to 4.7% of GDP

Serbia will revise spending to limit the budget deficit to 4.7% of economic output this year as part of a broader programme to balance austerity and growth, the Finance Ministry said. Spending will be cut by 40 billion dinars ($464m), mostly by reducing administration, while public wages and pensions won’t be lowered. (Bloomberg)

Ambassador says austerity not a barrier to growth

Austerity, or the consolidation of public and private budgets, is not an impediment to growth, the German ambassador to Ireland has said. He said one of the causes of the crisis has been ‘excessive public debt’ and that living within our means is a pre-condition for long-term sustainable growth. (Irish Times)

Georgia should reduce political uncertainty, says IMF

Georgia should reduce political uncertainty and explain government policies to investors to avert an economic slowdown, the International Monetary Fund said on Tuesday. Prime Minister Bidzina Ivanishvili and President Mikheil Saakashvili have been trading accusations of corruption and misrule in a feud that has threatened Georgia's reputation as one of the more business-friendly states in the region. (International Business Times, US)