Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Spanish PM calls time on austerity policies

Share this article

Spanish PM calls time on austerity policies
"The jobs situation is bad and that is the main challenge, but we can see some light" at the end of the tunnel, Spanish Prime Minister Rajoy says. File photo: Pierre-Phillipe Marcou
12:50 CET+01:00
The Spanish government will ease its austerity reforms over the coming two years as the economy appears to be emerging from recession, Prime Minister Mariano Rajoy said on Thursday.

"I think we are now in a position to say that there will not be any cutbacks as big as the ones we have adopted over the past two years," Rajoy said in an interview on national radio to mark the midpoint of his mandate.

Since his landslide election victory two years ago, Rajoy has pushed through unpopular spending cuts, tax rises and labour reforms in a bid to stabilize the public finances of the economy, the  fourth-biggest in the eurozone.

The latest official figures show Spain timidly emerged from a two-year recession in the third quarter of this year, but the unemployment rate remains extremely high at nearly 26 percent.

"The jobs situation is bad and that is the main challenge, but we can see some light" at the end of the tunnel, Rajoy said.

European authorities are closely watching to see that Spain follows through on its promises to lower its public deficit, but Rajoy said the intensity of the reforms would ease from now on.

He said he hoped to lower income tax, which his government had raised days after taking power with an absolute majority in parliament.

"These were difficult decisions that no one likes to take, but they were absolutely indispensable and I insist they helped to lay a solid base for the future, to enable growth and create jobs," he said.

"I think the results are beginning to be seen and are going to be seen in the coming year."

He promised no further rise in value-added sales tax in 2014. The government increased that tax last year, fuelling angry street protests and raising warnings that the move would dampen consumption.

Get notified about breaking news on The Local

Share this article

Advertisement

From our sponsors

The Swedish university tackling the challenges of tomorrow

Ranked among the world's best young universities in the QS Top 50 Under 50, Linköping University (LiU) uses innovative learning techniques that prepare its students to tackle the challenges of tomorrow.

Advertisement
Advertisement
Jobs
Click here to start your job search
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement