SPANIARDS are bracing themselves for more tough austerity measures with the government set to announce its latest budget on Thursday.
The reforms will include spending cuts, tax rises and a freeze on pensions aimed at addressing a €60 billion shortfall in the economy caused by the collapse of the property market.
The tightening of the country’s collective belt will also help Spain meet the terms which are being imposed by the EU before a bailout will be granted.
The timescale of any request for financial help by Spain remains unclear, with doubts remaining over whether Madrid will need it.
The reforms are not expected to ease Spain’s 25% unemployment, with some analysts predicting the figure could rise to 26.5% next year.