Spanish PM Proposes Austerity Cuts

    Police clash with protestors during a demonstration against austerity measures announced by the Spanish government, at the parliament in Madrid, Spain, Wednesday, Sept. 26, 2012. Spain's Parliament has taken on the appearance of a heavily guarded fortress with dozens of police blocking access from every possible angle, hours ahead of a protest against the conservative government's handling of the economic crisis. (AP Photo/Andres Kudacki)

    Andres Kudacki / AP Photo

    Spanish Prime Minister Mariano Rajoy proposed an austerity budget for 2013 amid rumors that the country will seek a bailout. The budget, called a “crisis budget designed to exit the crisis” by Deputy Prime Minister Soraya Saenz de Santamaria, imposes a pay freeze on public-sector employees and a 20 percent tax on lottery winnings—but protects pensions. Yet the budget is unlikely to please the Spanish people, with tens of thousands protesting Madrid. A stress test of the country’s banks is set to be released on Friday, while Spanish stock slightly rebounded in early trading on Thursday after falling sharply on Wednesday.

    Read it at BBC News