Spain Budget to Impose Further Austerity Measures

Spain is due to set out its austerity budget for 2013 later, against a backdrop of a deteriorating economy and 25% unemployment rate.

Madrid is expected to outline 39bn euros ($50bn; £31bn) worth of savings, tax rises, and structural reforms.

It comes amid further protests this week, and growing expectations that Spain will seek a bailout from its eurozone partners.

On Friday, results of a stress test on Spain’s banks are due to be released.

Meanwhile Castile La Mancha has become the fifth of Spain’s 17 regional governments to say that it will draw on a rescue fund set up by Madrid.

The central Spanish region said it would request 848m euros from the 18bn-euro Regional Liquidity Fund, joining Valencia, Murcia and Catalonia, who have collectively requested 3bn euros.

© 2012 SAT Telecommunications Ltd.

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