Zapatero announces new tax and spending cuts in bid to calm markets

Wed, 01 Dec 2010

Madrid - Spanish Prime Minister Jose Luis Rodriguez Zapatero on Wednesday announced new measures aimed at boosting economic growth and cutting government spending, in an attempt to calm markets concerned about the country's economic stability.

The measures included tax cuts to benefit 40,000 small and medium-sized companies, Zapatero told parliament.

The government would also slash a monthly subsidy of 426 euros (580 dollars) to jobless people who were not receiving any other unemployment benefits, Zapatero announced. That measure will take effect in February.

Other measures included placing Madrid and Barcelona airports partly under private management, privatizing 30 per cent of the national lottery agency, and favoring the creation of private employment agencies.

Spain's unemployment stands at about 20 per cent, the highest in the European Union.

The government was due to approve the measures on Friday.

Zapatero made the announcement after the yields on Spain's 10-year bonds rose to a record difference against German bonds on Tuesday.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/news/356034,cuts-bid-calm-markets.html.