An Austerity budget was Approved by Spain

An Austerity budget was Approved by Spain

The Spanish government on Friday presented its budget for 2012, which bills itself as the most austere of the history of a country that raises the concern of its European partners.

The mission of government is clear: in twelve months to reduce the GDP deficit of 8.51% to 5.3%. To achieve this, the executive curator Mariano Rajoy should save, according to preliminary estimates, about 35,000 million euros, but the figure will be probably higher due to the recession, which this year is expected to make GDP fall by 1.7%.

The rating agency Moody’s estimated 41,500 million euros and the Foundation of Savings Banks (Func) 55,000 million commitment.

Determined to reassure his European partners, the Spanish Minister of Economy, Luis de Guindos, told reporters in Copenhagen that thanks to the measures of his government, in power since December, ” Spain will no longer be a problem”.

One of these measures, a reform of labor market more flexible dismissal to combat record unemployment of 22.85%, on Thursday took 800,000 protesters to the streets across the country, according to the Interior Ministry, which also protested austerity policies.

In its effort to contain the deficit, Madrid wants to freeze the salaries of new officers and reduce the budget of ministries around 15%, although it excludes raise VAT and other taxes that affect consumption. (FL)