Abbott's now in real fiscal trouble

As business warns Canberra against spending cuts and the argument against extreme austerity gains global traction, the Coalition has some serious restrategising to do.

Comments from the Business Council and Australian Industry Group, published yesterday, look like a major headache for Tony Abbott.

Both groups, neither of which is a fan of big government, nonetheless called on the the Gillard government to rethink its expenditure cutting spree.

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