Spain announces new third round of austerity measures
People carry signs that read "I'm not cuttable" during a demonstration called for by trade unions against government spending cuts, austerity measures and labour reform under the slogan, "Don't stay quiet. Defend your rights", in Madrid June 20, 2012.
Image by: SUSANA VERA / REUTERS
Image by: SUSANA VERA / REUTERS
Spanish Prime Minister Mariano Rajoy on Wednesday unveiled a third round of austerity measures, saying Spain's new agreements with the eurozone needed to be met rapidly to make markets react favourably.
The measures included raising value added tax, scrapping Christmas bonuses for civil servants and tax reductions for house buyers, reducing unemployment benefits, trimming local administration and improving the control of local accounts.
Spain was in a "every weak" position because of its "excessive indebtedness and serious recession," Rajoy told parliament.
The eurozone Tuesday outlined conditions for a loan of up to 100 billion euros (123 billion dollars) to Spain's ailing banks. The conditions were expected to include tougher austerity, the daily El Pais said Wednesday.
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