Spain tightens austerity screw in 2013 budget
Linkedin

Spain tightens austerity screw in 2013 budget

Madrid : Spain | Sep 29, 2012 at 10:41 AM PDT
XX XX
Views: Pending
 
Spaniards swarm Madrid for rally against austerity

MADRID - Spain's government unveiled Thursday a 2013 budget that tightens austerity even in the teeth of growing protests, easing the path to a widely expected sovereign bailout. The 2013 budget rakes in 39 billion euros ($50 billion) in spending cuts and tax increases so as to curb the public deficit despite a recession, a jobless rate of nearly 25 percent and soaring debt repayments.
Only old-age pensioners were spared in the slew of cuts, aimed at ensuring Spain complies with its commitment to the European Union to get the public deficit under control.
"It is a budget for a period of crisis, but aimed at getting out of this crisis," Deputy Prime Minister Soraya Saenz de Santamaria told reporters after a cabinet meeting.
Defying market scepticism, Madrid vowed to slash the deficit from a blowout figure of 8.9 percent of economic output last year to 6.3 percent this year, 4.5 percent in 2013 and 2.8 percent in 2014. "It is a major commitment to reducing the public deficit but also oriented towards economic growth and creating employment" Budget Minister Cristobal Montoro told journalists.
The focus is on spending cuts, the government said. Expenditure by ministries is lowered by 8.9 percent, public sector salaries are frozen for the third year running and the regions, which pay for health and education, must find seven billion euros in savings.
But retirement pensions are expected to go up by one percent, sticking to a key pre-election promise of Prime Minister Mariano Rajoy's conservative government.
One other big item going up next year, however, is the cost of servicing Spain's public debt: interest payments are forecast to leap 33.8 percent to 38.6 billion euros.

1 of 2
Next
Spain has about 30 billion euros ($38 billion) in repayments looming in October
Spain has about 30 billion euros ($38 billion) in repayments looming in October
farooq0300 is based in Faisalābād, Punjab, Pakistan, and is a Stringer for Allvoices.
Report Credibility
 
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear
 
 
 
Advertisement
 

News Stories

 
  • Spain, Portugal brace for more austerity protests

      The Bellingham Herald
    Authorities in Madrid are bracing for more protests near the Spanish Parliament in the city's downtown district after demonstrations there last week brought violence and arrests. The latest rally Saturday is expected to draw tens of thousands of...
  • Spain debt rises on aid to banks, regions

      Turks and Caicos Free Press
    Spain 's debt level and borrowing needs are set to rise next year, piling pressure on the government to apply for international aid, as it pours funds in to cash-strapped regions and an ailing banking system, its budget showed on Saturday. Spain's...
  • Spain, Portugal hit with anti-austerity protests

      Seattle Post Intelligencer
    Thousands of Portuguese enduring deep economic pain from austerity cuts took to the streets Saturday in protest, and Spanish demonstrators outraged over similar measures were preparing to approach parliament for the third time this week to vent their...
  • New protests in crisis-hit Spain

      The Daily Telegraph
    Spain, where the government submitted an austerity budget and said the public debt and deficit are set to rise far above earlier forecasts. Chanting that politicians must resign, the demonstrators massed outside the Congress of Deputies in Madrid in...
  • Spain's debt to rise to 90.5% of GDP in 2013

      Merced Sun-Star
    Spain's public debt will reach 90.5 percent of its gross domestic product in 2013 with its new austerity budget, according to government documents. Spain also revised its debt ratio forecast for this year to 85.5 percent of GDP, up from 79.8 percent.
  • Spanish deficit revised up for 2011, 2012

      The Daily Telegraph
    S 2011 public deficit has been revised up to 9.44 per cent of gross domestic product from 8.9 per cent and is forecast at 7.4 per cent instead of 6.3 per cent this year. Budget Minister Cristobal Montoro told a press conference that the rise is due...

Blogs

 >

Images

 >
 

More From Allvoices

Related People

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report



Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.