Draghi’s Bond Rally Masks Debt Loop Trapping Spain’s Rajoy

Draghi’s Bond Rally Masks Debt Loop Trapping Spain’s Rajoy

Angel Navarrete/Bloomberg

Rajoy last year introduced five austerity packages he forecast would deliver 62 billion euros of savings in 2012 from cuts in public wages, jobs, unemployment benefits, health care and education spending. Those expectations have been dashed as Spain fell into recession, increasing unemployment costs and depressing government receipts.