The Spanish government introduced the most aggressive package of austerity measures in an effort to drag the astronomical amount of debt down.
Since the nation fell into its’ second recession in 2011, the eurozone’s fourth largest economy has been suffering tremendously. The nation faces 25 percent unemployment and is a nation who has lost much hope in their government’s decision making, Al Jazeerareports.
Spain’s conservative government, which was voted into office last November, revealed the 40 billion euros ($51 billion) in spending cuts for the 2013 budget, Deutsche Wellereports.
As the austerity measures were revealed and protesters filled the streets, a picture of Prime Minister Mariano Rajoy smoking a cigar, on sixth street in New York City circulated, which had many wondering just how sensitive the prime minister is to the woes of his country’s masses.
Government spending will be hacked by an additional 8.9 percent, while overall budget spending will increase by 5.6 percent for the 2013 budget.
Taxes, which have already risen will rise again and a series of structural reforms are included in the package of austerity measures.
A statement from the Spanish Central Bank on Wednesday announced the economy has continued to dwindle, which led to sharply falling stocks on Thursday.
After a cabinet meeting Deputy Prime Minister Soraya Saenz de Santamaria spoke with the press:
“This is a crisis budget aimed at emerging from the crisis … In this budget there is a larger adjustment of spending than revenue.”
With an increasing unrest in the nation, many wonder how well the austerity measure proposed by the government will work.
An independent audit of the country’s burdened banks will be released on Friday to see how much capital will be needed to strengthen them.