Spanish Prime Minister Mariano Rajoy said Monday the 2012 new budget, aimed at saving 27.3 billion euros, was “tough” but “necessary” to address past mistakes and revive economy.
The budget, the most austere in Spanish democratic era, will send a signal for Spain’s European partners, international markets and investors that Madrid was capable of confronting economic challenges and slashing general deficit to 5.3 percent of GDP by end of 2012, Rajoy said in a statement.
Rajoy, marking his 100th day in office today, said his government has placed the “foundation stone” for economic progress and eliminating unemployment.
He, however, asserted that these economic measures would bear fruit next year.
The Spanish government approved its 2012 budget last Friday with the objective of slashing the deficit to 5.3 percent by end of this year after it was 8.5 percent end of 2011.
The budget was approved amidst speculations that Spain was in danger of new economic recession coupled with higher unemployment, currently at 24.3 percent.