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

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Series Details 27.9.12
Publication Date 27/09/2012
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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.

Related Links
ESO: Background information: Spain offered time to curb deficit / EU urges tougher bank plan for Spain
ESO: Background information: ECB to face biggest test on euro gambit
BBC News, 27.9.12: Spain budget to impose further austerity measures
BBC News, 27.9.12: Six burning questions for Spain
El País, 26.9.12: Protestors return to Madrid streets amid claims of excessive violence
Spiegel Online International, 26.9.12: Turmoil over Austerity Hits Spain and Greece
European Commission: Memo/12/721: European Commission statement on the publication of results of stress tests of Spanish banks

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