Thursday, March 29, 2012

Spanish PM To Unveil Austerity Budget

Spain's prime minister is today set to unveil a new budget amid anger across the country at the government's austerity measures and changes to labour laws.

Hours after tens of thousands of workers took to the streets in protest, Mariano Rajoy will outline his latest economic plans.

He has already warned they will be "very austere" and it is rumoured they will involve spending cuts of up to 15% in every government department.

The government, which is not yet 100 days old, is under pressure to reduce its budget deficit, which last year ballooned to 8.51% of all the goods and services produced by Spain.

The European Union says this must be reduced to 5.3% this year and 3% in 2013 but economists warn that growth in Spain is so sluggish and debt so high, it will be a tough deadline to meet. Read More