spain tightens austerity screw in 2013 budget
Last Updated : GMT 20:25:07
Arab Today, arab today
Arab Today, arab today

Spain tightens austerity screw in 2013 budget

Arab Today, arab today

Arab Today, arab today Spain tightens austerity screw in 2013 budget

Madrid - AFP

Spain\'s government unveiled 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 a news conference 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 a news conference. 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 in a row 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 -- with interest payments forecast to leap 33.8 percent to 38.6 billion euros. With a jobless rate of nearly 25 percent, social security spending accounts for nearly two thirds of the nation\'s expenditure. In addition to a boosting sales and income taxes, the government agreed to tax lottery winnings above 2,500 euros at 20 percent, extend wealth taxes and curb corporate tax breaks for depreciation. Structural reforms in the budget, agreed with Brussels, featured further changes to the labour market, cutting red tape and new measures to liberalize markets such as energy and telecommunications. To reassure markets of Spain\'s determination to meet its deficit-cutting targets, the goverment announced it would create an independent fiscal authority to check any budget slippages. The formulation of the 2013 budget, to be followed by the release of an audit of Spain\'s sickly banking system on Friday, is seen on the markets as one of the final acts before a sovereign bailout. The eurozone has already agreed to extend a rescue loan of up to 100 billion euros for a banking system bogged down by bad loans that piled up after a 2008 property crash. If Spain formally requests a broader sovereign bailout, it would become eligible to benefit from a bond-buying programme for troubled states that was outlined by the European Central Bank on September 6. Such a programme would curb Spain\'s borrowing costs but to qualify Madrid would have to formally apply for help from the European Stability Mechanism and submit to its conditions. Importantly, Brussels welcomed the budget. The European Union\'s economics chief, Olli Rehn, said it was \"a major step to broaden and deepen structural reforms\" and praised its \"concrete, ambitious and well-focused measures\". But Spain\'s problems appeared to be multiplying. Investors are deeply concerned about political tensions between Madrid and the northeastern Spanish region of Catalonia, which has called snap elections on November 25 in a drive for more independence. The debt-struck region\'s parliament Thursday voted for referendum on Catalonia\'s \"collective future\". Spain\'s central government has vowed to thwart any attempt to hold a poll on Catalan independence. The regions\' debt situation is perilous, forcing many to apply for help from an 18-billion-euro central government liquidity fund. Castilla-La Mancha asked for 848 million euros on Thursday, adding to earlier requests from Catalonia, Valencia, Andalusia and Murcia that already amount to a total of about 15 billion euros. Also sapping market confidence was a joint statement by the German, Dutch and Finnish finance ministers on Tuesday \"which cast doubt on whether the rest of the eurozone will bear any of the costs of providing support to Spain\'s banks\", said Ben May, London-based analyst at Capital Economics. If Spain has to foot the bill for restructuring of its banks, its overall sovereign debt will rise and its deficit-cutting task will become even more urgent. Thousands of protestors rallied near the Spanish parliament for a second straight night over the austerity measures Wednesday, and more protests were under way Thursday

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

spain tightens austerity screw in 2013 budget spain tightens austerity screw in 2013 budget

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

spain tightens austerity screw in 2013 budget spain tightens austerity screw in 2013 budget

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Presenter Sherine Ramahi proud of her career

GMT 06:46 2017 Sunday ,19 November

Presenter Sherine Ramahi proud of her career
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday