Accessibility links

Breaking News

Spain Outlines New Austerity Measures

Mariano Rajoy's People's Party ousted the Socialists from power in elections in November.
Spain's new conservative government has outlined nearly 9 billion euros ($12 billion) in new spending cuts and tax rises to lower the country's borrowing.

The government of Prime Minister Mariano Rajoy also said Spain's 2011 deficit will be about 8 percent of its output -- higher than the 6 percent seen by the previous government.

The government has vowed to reduce the public deficit to 4.4 percent of gross domestic product in 2012.

The Popular Party last month ousted the Socialists from power at elections amid an economic downturn and with European leaders facing major debt challenges.

compiled from agency reports