Spain Vows To Continue Econ Reform Amid Rising Borrowing Costs |
| Wall Street Journal - Apr 10, 2012 |
Spain's government Tuesday vowed to stick to its reform agenda as its borrowing costs shot to their highest level since December and the European Commission gave a cautious initial assessment of its 2012 budget.
Speaking at a conference, Finance Minister Luis de Guindos defended the need for the EUR10 billion in cuts his government announced Monday to the country's health and education systems as the government struggles to slash its budget deficit to 5.3% of gross domestic product this year from 8.5% of GDP last year. The latest cutbacks come on the heels of the 2012 state budget presented late last month, which calls for EUR27 billion in spending cuts and tax increases.
"We need a sustainable healthcare system," De Guindos said. "That implies cuts." He also ruled out the need for an international financial bailout for his country, saying Spain has the capacity to complete a complex, ongoing reform of the country's property-laden banks and slash government spending.
The European Commission, the European Union's executive branch, applauded the new cuts in health and education and described the 2012 budget as a "substantive package" of cuts. However, spokesman Olivier Bailly said the Commission was awaiting more information on the regional and social-security expenditure plans to have a complete view of Spanish public finances.
Read Full Article from Wall Street Journal
- Posted: 2012-04-10 10:29:33
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