Unswayed by protests, Spain unveils new austerity budget
MADRID (AFP) - Spain's government met on Thursday to take an axe to spending in a new budget for 2013, unswayed by angry protests but bowed by markets anticipating a full sovereign bailout, and soon.
Spain has said it will lop spending and boost taxes to rake in 39 billion euros (S$61 billion) in the budget, adding to the pain that sent thousands of protesters into Madrid's streets on the previous two nights.
The formulation of the 2013 budget, to be followed by the release of an audit of Spain's sickly banking system on Friday, is seen on the markets as one of the final acts before a sovereign bailout.
Prime Minister Mariano Rajoy's right-leaning Popular Party government has already accepted a euro zone rescue loan for the banks of up to 100 billion euros.