Spain has set out its austerity budget for 2013, comprising a tough programme of savings, tax rises and reforms.
Deputy Prime Minister Soraya Saenz de Santamaria said today that next year’s budget would focus on cutting spending rather than hiking taxes, adding that the government would pass 43 new laws to reform the economy over the next six months.
Spain is struggling with a deteriorating economy and a youth unemployment rate of 50 per cent.
Tax revenue will increase by 3.8 per cent more in 2013 than this year, and new tax measures will rake in an extra €4.7bn over two years, the government said today.
The cuts, unveiled today, are aimed at cutting Spain’s budget deficit by €40bn next year.
The Spanish government will also present reforms to the pension system by the end of the year.
Meanwhile, results from a stress test on Spanish banks are expected tomorrow.
City A.M. Reporter