Friday, September 28, 2012

Spain braces for More protests as budget cuts are unveiled

Madrid (CNN) -- Spain will create a new fiscal authority to oversee the new spending cuts, tax increases and structural adjustments included in a new budget presented Thursday.

The country is in an economic crisis with an unemployment rate near 25%, and protests have grown against austerity measures, such as the ones included in the new budget.

Despite the budget crunch, Vice President Soraya Saenz de Santamaria said there will be increases in pensions, scholarships and interest on debt.

But the budget also includes large reductions in spending in an effort to reduce deficits.
The budgets of all ministries will be reduced by an average of 12%, Saenz said. Read More