Sep 27, 2012

Why Spain is different at the PIIGS trough

Spain is now looking toward a full-scale international rescue package. But Prime Minister Mariano Rajoy has to stand firm in the face of fierce protests, writes Keshia Jacotine.

Earlier this week Spaniards were told to brace themselves for further austerity measures, as the Spanish government prepared for further tax rate increases and spending cuts to prepare the country for a potential bailout from the European Union. This was followed by clashes between protesters and police outside Parliament in Madrid after an estimated 6000 people took to the streets in response.

Spain is currently experiencing its second recession in three years, with a deficit reaching  €50.1 billion, or 4.77% of GDP in August. The unemployment rate stands at 26% and now, like his former counterparts in Ireland and Greece, Spanish Prime Minister Mariano Rajoy has to balance domestic pressure to uphold Spanish sovereignty and demands from Brussels to shape up and accept a rescue package.

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