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The Spanish Government will cut an additional €19 billion from the Autonomies’ budget within the next two years

The Spanish Prime Minister, Mariano Rajoy, has announced further budget cuts for 2013 and 2014, totalling an additional €89.1 billion. These budget cuts are to be added to those implemented between 2010 and 2012. Autonomous Communities will have to cut their budget by an additional €19 billion in 2013 and 2014, which is added to the €15 billion already announced in Spring affecting education and healthcare. However, no details of the €19 billion plan were provided. Rajoy stated that in 2014 the Spanish economy will grow by 1.2%, leaving the recession behind. With this plan, Spain’s public deficit for 2013 will be set at 4.5% and at 2.8% for 2014.

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04 August 2012 12:21 AM

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ACN

Barcelona (ACN).- The Spanish Government will oblige the Autonomous Communities to implement further budget cuts in 2013 and 2014. Altogether they will have to cut an additional \u20AC19 billion to be added to the \u20AC15 billion budget cuts already announced for the next two years. While the previous amount of \u20AC15 billion would affect the education and healthcare service provided by the Communities, no details were provided on the \u20AC19 billion plan. This additional adjustment is part of a new \u20AC89.1 billion cut for the next two years announced this Friday by the Spanish Prime Minister Mariano Rajoy. Rajoy announced further budget cuts in order to meet the deficit targets for 2013 and 2014, set at 4.5% and 2.8% respectively. To reach them, Spain will in also cut \u20AC39 billion in 2013 and \u20AC50 billion in 2014. These amounts are to be added to the Autonomies\u2019 \u20AC15 billion for the next two years, and therefore the total adjustment reaches \u20AC104.1 billion, which represents 10% of Spain\u2019s GDP. Furthermore, these future budget cuts are to be added to the adjustments already made between 2010 and 2012. The only good news: Rajoy stated Spain\u2019s GDP will be growing by 1.2% in 2014, leaving the recession behind.


The Spanish Prime Minister, Mariano Rajoy, made this announcement this Friday, after the weekly Cabinet Meeting. Rajoy\u2019s press conference was highly anticipated after Thursday\u2019s announcement by the President of the European Central Bank, Mario Draghi. Draghi stated that the euro was \u201Cirreversible\u201D and that the ECB will do whatever is needed to save the euro, although firstly Governments need to put the financial mechanisms in place and request an intervention.

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  • Spanish Prime Minister Mariano Rajoy announcing the budget cuts for 2013 and 2014 (by La Moncloa)

  • Spanish Prime Minister Mariano Rajoy announcing the budget cuts for 2013 and 2014 (by La Moncloa)