Copenhagen, 30/03/2012 (Agence Europe) - The Spanish government hopes that the 2012 budget it unveiled officially on Friday 30 March will be welcomed by the Eurogroup at its meeting in Copenhagen the same day. Spanish Economy Minister Luis de Guindos said: “This is a budget that will show the Spanish government's commitment to austerity and fiscal consolidation”. The head of the Eurogroup, Jean-Claude Juncker said on Friday morning that the budget meant that Spain will no longer be a problem for the European Union. He said that although the country was going through a difficult period, it was doing all that was reasonably possible, which was why he was not as concerned as other leaders.
In order to reduce its budget deficit from 8.5% of GDP to 5.3% this year, Madrid has unveiled new public spending cuts of €27 billion in addition to the €15 billion decided at the end of 2011. In addition to the cuts, there will be tax rises to raise €12 billion, and electricity and gas will go up by 7% and 5%. The austerity measures are the most severe since the death of the dictator, General Franco. They were announced on Thursday evening during a general strike of Spanish workers. Spain is forecast to be in recession in 2012 and 2013. Unemployment is currently close to a quarter of the working population. (MB/transl.fl)