TEHRAN, Iran (AP) — Iran's parliament has blocked the bulk of President Mahmoud Ahmadinejad's proposed cuts in energy and food subsidies, intensifying a battle over legislation that has the potential to stoke more unrest in the country.
The parliament approved $20 billion in cuts, which is just half of the savings demanded by Ahmadinejad's government. Lawmakers have said they feared the full $40 billion in cuts would have triggered a 50 percent surge in inflation.
Iran is already struggling under high inflation and economic sanctions imposed by world powers suspicious of the country's nuclear program.
The vote late Tuesday in parliament followed a refusal by Iran's supreme leader to take sides, effectively giving lawmakers the green light to move ahead.
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