Spain Braces for Renewed Austerity as Tax Take Hemorrhages
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Spanish Prime Minister Mariano Rajoy may unveil a third austerity round within days as his six-month-old government tries to avoid a second bailout amid hemorrhaging tax receipts.
Rajoy said on July 2 the time has come to “press the accelerator pedal” as he tries to tame bond yields. Government officials have said they are considering raising taxes on gas and products that have a reduced rate, such as food, hotels and restaurants. Rajoy plans to announce an overhaul of public administration this week, Maria Dolores de Cospedal, his deputy in the ruling People’s Party, said today.