Spain to announce austerity measures in 2013 budget; protest continues

Last Updated: Thursday, September 27, 2012 - 09:17

Zeebiz Bureau

Madrid: Spain will announce a series of economic reforms and a tight 2013 budget on Thursday even as thousands of anti-austerity demonstrators are demanding the resignation of that Prime Minister Mariano Rajoy.

Rajoy will enact further cutbacks as his efforts to bring down one of the euro zone's largest public deficits have been undermined by falling tax revenues in a recession.

Reforms intended to win over sceptical investors and control spending are likely to include a new tax oversight body as recommended by Brussels, limitations on early retirement, new taxes on greenhouse emissions and stock transactions and eliminating some tax exemptions.

Spain is negotiating the terms of a European aid package that would trigger a European Central Bank bond-buying programme and ease Madrid's unsustainable borrowing costs. The reforms to be announced on Thursday are meant to pre-empt the conditions that would be attached to the aid.

With Agency Inputs

First Published: Thursday, September 27, 2012 - 09:17

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