Rajoy Wavering Brings Italian Risks to Spain: Euro

Prime Minister Mariano Rajoy is running out of time to make good on his pledge to complete an overhaul of Spain’s economy.

With an election due by November 2015, the government is showing wavering resolve to tackle the European Union’s second-highest jobless rate or revamp the tax system after pushing through unpopular measures including a labor-law reform and public sector wage cuts. The government this month rejected tax-change proposals from a task force Budget Minister Cristobal Montoro himself had appointed.