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GETTING SERIOUS Spain Unleashes New Austerity Measures Alberto Di Lolli / AP Photo

Spain Unleashes New Austerity Measures

The Spanish government is celebrating being granted a big bank bailout by the U.N. with a brand-new plan for austerity. Spain plans to tighten its belt even further through a new hike in sales tax on such things as cigarettes, cars, clothing, and telephone services, as well as public transportation, processed foods, and hotel and bar services. They’re also adding several more spending cuts in the hope of taking $79.85 billion off its total budget over the next two and a half years. “We are living in a crucial moment which will determine our future and that of our families, that of our youth, of our welfare state,” said Spanish Prime Minister Mariano Rajoy. “This is the reality. There is no other and we have to get out of this hole and we have to do it as soon as possible and there is no room for fantasies or off-the-cuff improvisations because there is no choice.”

July 11, 2012 6:37 AM