Spain's PM announces 65-billion-euro austerity package

Spain's PM announces 65-billion-euro austerity package
July 11, 2012 - 17:25 AMT

PanARMENIAN.Net - Spain's Prime Minister Mariano Rajoy announced Wednesday, July 11 a 65-billion-euro ($80 billion) austerity package to avert financial collapse as angry miners rallied against subsidy cuts.

According to AFP, Rajoy, interrupted by howls from opposition members as he outlined the cuts, performed a U-turn by ramping up value added sales tax having promised he would not raise it, and took an axe to state expenditure.

"These are not pleasant measures but they are necessary," said the bearded 57-year-old leader of the conservative Popular Party.

Rajoy reminded parliament that Spain is going through one of its worst recessions in history, with unemployment at 24.4 percent, and economic activity set to decline by 1.7 percent this year.

Spain's premier said new spending cuts and other measures including notably a rise in value-added tax would bring in 65 billion euros by the end of 2014 to help trim the annual deficit.

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