Global currency and stock markets continue to bounce around as the fight over the fate of Spain’s economy continues. Will its budget cuts be enough? Will it press for a huge bailout? The nation’s stock market lurches from huge gains to sharp drops. Even U.S. markets have been affected by nervousness about the southern European country.
Spain is not out of the woods despite a well-received budget, with analysts and economists arguing that the budget is more important for easing the way towards a bailout than the measures itself.
Key proposals announced by the government on Thursday include cuts to ministries’ spending of 8.9 percent, more liberalization of the goods and services sectors, aimed at increasing domestic and external competitiveness, and a new independent body to monitor public finances.
Douglas A. McIntyre