Spain unveils new budget to tackle the economic crisis
Spain has revealed its budget for 2013 as it attempts to hit austerity targets set out by the European Commission, the ECB, and the IMF.
Spanish Deputy Prime Minister Soraya Saenz de Santamaria has said that the budget is specifically designed to end the crisis in Spain.
The plans include a 12% reduction in ministerial spending, a freeze in public sector pay for another year, and the creation of a body that will keep an eye on government finances.
Ms Saenz de Santamaria has said that the budget focuses on cuts rather than tax hikes, in an effort to appease a population already dealing with high unemployment.
The government has estimated that the budget will reduce the deficit to 6.3% of GDP by the end of the year.
The Deputy Prime Minister also announced that the government was going to introduce new laws that will reform the economy.
The reforms went further than the troika required, especially the formation of the new financial regulating body.
Olli Rehn, EU Economic Affairs Commissioner, said, “I particularly welcome the ambitious plans to establish an independent fiscal council, to further liberalise professional services, and to effectively reduce the fragmentation of the internal market in Spain.”