Spain’s PM-elect vows to slash deficit, boost pensions
December 20th, 2011 - 3:12 pm ICT by IANSMadrid, Dec 20 (IANS/EFE) Spanish Prime Minister-elect Mariano Rajoy Monday unveiled the general policies of his government, including reducing the public deficit by 16.5 billion euros ($21.4 billion) in 2012 and increasing the portion of the budget going to pensions.
In his much anticipated speech before the lower house of parliament, Rajoy cited as his administration’s two biggest tasks “stopping the bleeding” of unemployment and stimulating growth.
After confirming that the deficit will settle this year, according to predictions by the current government, at around 65 billion euros, or 6 percent of GDP, Rajoy announced that in 2012 “we will have to reduce it by 16.5 billion euros”.
By doing so, the 4.4 percent of GDP fixed as the debt limit would be respected.
“That is the objective, that is our commitment,” said the leader.
Rajoy, due to be sworn in Wednesday, also enumerated several measures that have been proposed, among them a forthcoming budget-stability law, finalizing the reorganization of the financial sector and “structural reforms to make the economy more flexible and more competitive”, including an overhaul of labour law.
After noting that the panorama “could not be more dismal” with a Spanish economy that is not growing and “the number of people seeking employment without finding it… at 5.4 million (23 percent of the workforce)”, he emphasized that he will focus “on stimulating growth and fostering the creation of jobs”.
He warned that “the only and exclusive” portion of the budget that he intends to increase in 2012 are those funds allocated to increasing pensions so that retirees may recover lost purchasing power.
The freezing of pensions was one of the most criticized measures adopted by the outgoing socialist government of Jose Luis Rodriguez Zapatero to reduce the public deficit to 6 percent of GDP this year.
All the other spending items are “subject” to cuts, Rajoy emphasized.
–IANS/EFE
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