TIGHTENING THE BELT: Spain’s government imposed more austerity measures Wednesday as it unveiled sales tax hikes and spending cuts aimed at shaving €65 billion ($79.85 billion) off the state budget over the next two and a half years.
THE BACKGROUND: The move came a day after winning European Union approval for a huge bank bailout and breathing space on its deficit program. It also came as thousands of miners stung by a huge cut in government subsidies demonstrated outside the Industry Ministry in Madrid.
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THE DETAILS: The spending cuts include a wage cut for civil servants and members of the national parliament and a new wave of closures at state-owned companies. Spain will also speed up an increase in the retirement age from 65 to 67.
