Madrid faces test over bank review / Rajoy fights growing Spanish turmoil

Spain is due to set out its austerity budget for 2013 later, against a backdrop of a deteriorating economy and 25% unemployment rate.

Spanish Prime Minister Mariano Rajoy attempted to stave off a backlash from financial markets on the 27 September 2012 by announcing budget plans for 2013, as he faced the most testing 48 hours of his nine-month-old tenure.

Madrid was expected to outline €39bn worth of savings, tax rises, and structural reforms.

The budget cames amid further social protests in Madrid and elsewhere, and growing expectations that Spain wwould seek a bailout from its eurozone partners.

On the 28 September 2012, results of a stress test on Spain's banks were due to be released.

ESO: Background information: Spain offered time to curb deficit / EU urges tougher bank plan for Spain http://www.europeansources.info/record/spain-offered-time-to-curb-deficit-eu-urges-tougher-bank-plan-for-spain/

ESO: Background information: ECB to face biggest test on euro gambit http://www.europeansources.info/record/ecb-to-face-biggest-test-on-euro-gambit/

BBC News, 27.9.12: Spain budget to impose further austerity measures http://www.bbc.co.uk/news/business-19733995

BBC News, 27.9.12: Six burning questions for Spain http://www.bbc.co.uk/news/business-19711689

El País, 26.9.12: Protestors return to Madrid streets amid claims of excessive violence http://elpais.com/elpais/2012/09/26/inenglish/1348685773_953192.html

Spiegel Online International, 26.9.12: Turmoil over Austerity Hits Spain and Greece http://www.spiegel.de/international/europe/protests-in-spain-and-strikes-in-greece-over-austerity-measures-a-858040.html

European Commission: Memo/12/721: European Commission statement on the publication of results of stress tests of Spanish banks http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/12/721&format=HTML&aged=0&language=EN&guiLanguage=en

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