Austerity measures to increase in Spain budget

Spanish government prepares to lay out austerity budget for 2013 as borrowing costs hit dangerous levels and stock market falls.

27 September 2012, 12:00am

1 min read

Despite growing protests by Spanish citizens, the government is set to impose further austerity measures to save the country's economy

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As the economy continues to deteriorate and unemployment rate hits 25% in Spain, the government prepares to lay out its austerity budget for 2013.

Savings, tax rises and structural reforms amounting to a total of €39 billion are expected to be outlined in Madrid amid growing protests against austerity measures and expectations for Spain to receive a bailout from the Eurozone.

The stock market fell on Wednesday as the country’s borrowing costs rose to dangerous levels and investors seem to be losing patience.

It is hoped that austerity measures to be imposed on Thursday will result in fewer economic conditions when a second bailout is requested.