SPAIN: More Austerity Needed

spain protests

Photo: AP

Spain’s finance minister said that Spain might need to endure even deeper spending cuts, according to Bloomberg.Elena Salgado, the finance minister, said that the 3.8 per cent reduction in spending for the next year may not go far enough. “It is more necessary than ever to show our firm commitment towards austerity,” Salgado said.

This comes as Spanish bond yield soared to a record in the euro-era on Tuesday because of contagion fears when Ireland’s bond ratings were cut to junk.

Spain’s Prime Minister, Jose Luis Rodriguez Zapatero told Parliament today that Spain’s economy “probably” grew in the second quarter, but Spain’s unemployment rate still remains above 21 per cent.

Protests have sprung up in Spain against the austerity measures, and on one notable occasion, protestors surrounded the Catalan parliament so that leaders had to be helicoptered in for an austerity debate.

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