Spain has announced a drastic series of spending cuts and tax increases in the face of an ultimatum by the EU, as the country struggles to reduce its deficit while negotiating a bailout for its banks.
"These are not pleasant measures but they are necessary," Prime Minister Mariano Rajoy told parliament referring to a programme designed to bring in €65 billon in savings by the end of 2014.
"We have very little room to choose. I pledged to cut taxes and now I’m raising them. But the...
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