|Page (1) of 1 - 03/29/12||email article||print page|
Spain says tough austerity budget will let dispel bailout fears
MADRID (AP) ' Spain's economy minister says the country's austerity budget due Friday will reassure the rest of Europe that the country is not a candidate for a bailout.
Economy Minister Luis de Guindos spoke Friday in Copenhagen as he entered an informal meeting of eurozone colleagues. In Madrid, the Spanish Cabinet prepared to approve a draft 2012 budget expected to include '30 billion ($40 billion) in spending cuts and tax hikes.
That deficit-reduction package is designed to satisfy EU requirements and calm investors worried about Spain's public finances. Their appetite for Spanish debt determines the country's borrowing costs ' and the likelihood of it not being able to finance itself at an affordable rate and eventually following Greece, Ireland and Portugal in seeking a bailout.