Spanish government set to unveil more cuts
Following two days of public protests and amid mounting concerns about the country’s economic future, the Spanish government is to unveil its plans for further austerity measures.
The Spanish government will present the first draft of its 2013 budget at a cabinet meeting later. The meeting is expected to include plans for the latest austerity measures which have provoked mass protests, some of which have turned violent.
Many think the measures, which are expected to include higher taxes and changes to pensions, will be a precursor to a request for help from the European Central Bank.
Recession-hit Spain has come under pressure to tap an ECB bond-buying programme, designed to keep a lid on the country’s borrowing costs. So far, the government has been reluctant to ask for help for fear of the conditions attached.
Many investors think the measures, to emerge alongside a draft 2013 budget, will pre-empt those conditions, making it easier for the government to request help.
The package comes in the wake of big falls in Spanish stocks.
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