September 30, 2012
Spain Tries More Austerity
Megan Greene, Council on Foreign Relations
Amid rising Spanish borrowing costs and fears over the solvency of the eurozone's fourth-largest economy, the government of Spanish Prime Minister Mariano Rajoy on September 27 unveiled a new budget for 2013 (NYT) that includes a host of spending cuts and tax increases. The move is expected to pave the way for Spain to request formal financial assistance from the European Union, while benefiting from the European Central Bank's unlimited bond-buying program.
TAGGED: austerity, Spain