Spanish PM in austerity pledge
Spain’s prime minister said today that his government is determined to stick to harsh austerity measures for as long as is necessary.
Mariano Rajoy acknowledged that the country is experiencing turbulence but said it “will not sink”.
Spain, where unemployment stands at 24.4%, has imposed spending cuts and tax hikes to get out of a financial crisis that many fear will drag down the rest of the struggling eurozone.
Mr Rajoy said his government has “the will to persevere in this line for as long as is necessary”.
Spain’s banking sector is laden with soured property investments and the government needs €19bn to rescue just one bank, Bankia.
