In parliament today, Spain’s incoming Prime Minister, Mariano Rajoy, has promised deep public spending cuts while offering tax breaks for companies, telling parliament he aims to cut the budget deficit by 16.5bn euros next year. How he actually intends to do this was not forthcoming.
Unemployment in Spain is nearly 23% and Rajoy said it would be his government’s priority to create jobs. The 5.4m jobless figure is the highest in the EU and the rate among under-25s is around 46%.
The new Prime Minister’s plans, whatever they may be, mean getting the budget deficit down to 4.4% of GDP next year and he promises sweeping reforms of the public sector to reduce costs, including a freeze on public hiring except for the state security apparatus and essential services.
The new leader’s official swearing-in is due to take place on Wednesday and on Thursday his new government will take office.