Iranian president announces cuts to subsidies

[The Caspian Hare]

http://news.yahoo.com/s/ap/20101218/ap_on_re_us/iran_nuclear;_ylt=AmnR7LjlZuG3J.Jyz7kPIDus0NUE;_ylu=X3oDMTNnN2x0OWp2BGFzc2V0A2FwLzIwMTAxMjE4L2lyYW5fbnVjbGVhcgRjY29kZQNtb3N0cG9wdWxhcgRjcG9zAzQEcG9zAzEEcHQDaG9tZV9jb2tlBHNlYwN5bl9oZWFkbGluZV9saXN0BHNsawNpcmFuaWFucHJlc2k-

TEHRAN, Iran – Iran's president on Saturday announced the start of a plan to slash energy and food subsidies, part of government efforts to boost the country's ailing economy.

In an interview with state television, Mahmoud Ahmadinejad said the deep cuts to the subsidies "will start beginning Sunday," and vowed to fully cut all subsidies by the end of his term in 2013.

The cuts come as Iran remains deadlocked with the U.S. and its allies over Tehran's disputed nuclear program. The U.N. Security Council slapped a fourth round of sanctions on Iran last summer over its refusal to halt uranium enrichment, and there are signs those penalties are taking a toll on the nation's economy.