Speaking at a special session of Parliament that was held to discuss the latest set of austerity measures announced last Friday, Prime Minister Jose Luis Rodriguez Zapatero said he spoke earlier to opposition People's Party leader Mariano Rajoy on the matter.
In the same session, Rajoy said that his party endorsed the proposal to include the debt ceiling in the constitution. His party is widely expected to win the general election due on November 20. Zapatero, who is of the Socialist Party, said he expects the legislation for making changes to the constitution to be drafted soon and passed ahead of the November election. It is a strategic decision and would ensure the medium and long-term stability of the economy, he added.
The economy expanded only 0.2 percent quarter-on-quarter in the second quarter following a 0.3 percent rise in the first three months. The country's unemployment rate during the second quarter was around 20.9 percent.
The Spanish government's move comes after Germany and France urged Eurozone members to take decisive steps to balance budgets. The EU targets to limit budget deficit at 3 percent of gross domestic product.
Last Friday, Spain unveiled another round of austerity measures worth EUR 5 billion that include cutting sales tax on house purchases and reduction in drug procurement costs. The government aims to trim the budget deficit to 6 percent this year from 9.2 percent in 2010.
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