Spain applies the most important budget cut in the history of its democracy
Spain, March 30, 2012
After the national strike that disrupted the activities in Spain, President Mariano Rajoy decided to continue with his economic policies and announce the biggest cut since the return of democracy to that country: 27,000 million euros.
The Popular Party government did not change its policies after the strike against labor flexibility which took place yesterday. Instead, it approved the 2012 budget that includes a strong adjustment.
The total cut includes “more than 27,000 million euros,” a budget reduction of almost 17% in the ministries andm, as finance minister Cristobal Montoro said, it is the “biggest budget consolidation of democracy.”
Thus, the Spanish state seeks to reduce the public deficit from 8.51% to 5.3% of the GDP but still “supporting those most in need and not to stop growth and job creation.” Hard work in the context of an economic downturn and a record unemployment rate.