Spain Adopts New Budget Cut Measures

‘Spanish Deputy Prime Minister Soraya Saenz de Santamaria, Economy Minister Luis de Guindos, Treasury Minister Cristobal Montoro and Employment Minister Fatima Banez announced in a joint press conference on Friday that the government would freeze recruitment of civil servants during 2012 with no replacements for anyone leaving their positions, in addition to rises in the income tax.

The budget deficit stands at 8 percent of gross domestic product (GDP) for the year, a full 2 percentage points more than previously forecast, making austerity measures even more necessary, said Saenz de Santamaria.’

Read more: Spain Adopts New Budget Cut Measures