Despite furious miners rallying against the subsidy cuts affecting their industry, Spain’s Prime Minister, Mariano Rajoy, announced yesterday a 65 billion Euro austerity package aimed at averting a financial crisis in the Iberian state.
The leader of the conservative party is aware that the measurements, though necessary, are not welcomed. Prime Minister Rajoy said, “”These are not pleasant measures but they are necessary.”
Aside from spending cuts, a rise in valued-added taxes is also included in the new measures which hope to trim Spain’s annual deficit by collecting up to $78 billion by 2014.
But the government’s efforts to implement these new reforms face widespread demonstrations, especially from the mining sector. Workers protested against the subsidy cuts which had already cost miners almost €290,000 last year.
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Spanish oil company Repsol saw its first-quarter profits rise 12.4 percent to (EURO)643 million ($833 million), excluding results from YPF and Repsol YPF Gas, the Argentine units nationalized by the Buenos Aires government.
In an earnings report released Thursday, Repsol YPF SA attributed the strong results mainly to higher crude oil and gas prices, the resumption of production in Libya after the violent insurrection ended there, and good results at the liquefied natural gas division.