SA will struggle to stick to its promise to cut spending - Nene

Finance Minister Nhlanhla Nene has warned that the country will struggle to meet its promise to cut spending if government and unions fail to agree on inflation-linked wage increases. We avoided a Moody's credit rating downgrade earlier this year based on that promise to cut spending and with ratings agencies watching to see if we deliver, we may be in for some trouble as current wage demands far outweigh that of inflation. Mike Schüssler - Chief Economist: Economists.co.za joined Business Day TV on the line with his perspective.