Spain's new austerity plan will claw back 56 billion euros ($69 billion) for the state between now and 2014, according to figures published Saturday by the economy ministry. That figure excluded the effects of a planned energy and environment tax, said the document, which was published on the ministry website. "The estimated impact of these measures is approximately 13.5 billion euros in the remainder of 2012, 22.9 billion euros in 2013, and 20 billion euros in 2014," the English-language document said. That total of 56.4 billion euros set out in the document still leaves a shortfall of some 8.6 billion euros if the government is to make the 65 billion euros in cuts required by the European Union. Recent press reports have suggested that this sum will come, at least in part, from a sharp rise in electricity bills for industry and households. Saturday's ministry statement said only: "This calculation excludes the valuation of the impact of further measures, including energy and environmental taxation, which will be announced at a later date." This week Spanish Prime Minister Mariano Rajoy -- obliged by the European Union to order new cuts and tax increases to meet deficit-cutting commitments -- revealed Spain's new 65-billion-euro austerity package. The measures included a sales tax rise, lower jobless benefits, and public sector pay cuts. The government approved the package on Friday, and that evening thousands of people protested on the streets of Madrid. In July, Spain is to become the fourth eurozone country, after Greece, Ireland and Portugal, to get bailout funds when it receives the first tranche of a 100-billion-euro kitty for its banking sector. Eurozone finance ministers agreed this week to release a payout of 30 billion euros by the end of the month, and 45 billion euros in mid-November. But in an interview published Saturday, Germany's central bank chief suggested Spain would need more than the bailout for its ailing banks. European help for Spain should target the entire economy and not just the banking sector, Bundesbank chief Jens Weidmann told the Boersen Zeitung. "The banks' balance sheets are a reflection of the overall economy," he was quoted as saying by the financial newspaper. Spain's own figures, including a record 24.4 percent unemployment in the first quarter, showed Spain still had major issues to resolve, he argued.
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor