|EUR / USD||1.37976||0.67|
|EUR / GBP||0.82571||0.59|
|USD / GBP||0.598544||-0.10|
Spanish Prime Minister Mariano Rajoy admitted Sunday it would be difficult for the government to meet its deficit reduction targets despite a raft of austerity measures, as thousands of disabled people staged a noisy protest over cuts to their benefits.
"It is very complicated to reduce the deficit by 2.6 points in a context of recession, with as many problems with revenue and such high financing costs," Rajoy said in an interview published in La Razon newspaper.
"Spain was asked to make a very difficult effort, to go from 8.9 percent to 6.3 percent in only one year," said Rajoy, who has until now pledged to respect the public deficit target called for by the European Union.
"Our goal is to do things well and we will see what will happen at the end of the year," he said.
Spain, the fourth largest economy in the eurozone, is engaged in a deep austerity programme and is seeking to recover 150 billion euros ($195 billion) between 2012 and 2014, through both tax increases and budget cuts.
The task is all the harder as Spain slid back into recession at the end of 2011, less than two months after re-emerging from the previous one.
In the latest ant-austerity demonstration in Spain, thousands of handicapped people and their families joined a protest in Madrid against budget cuts in the health sector affecting their benefits.
Blowing whistles, beating drums and waving small white flags symbolising an SOS call, they shouted slogans such as "You'll do us in with so many cuts."
The demonstrators, some of them wheelchair-bound or blind with their guide dogs, included Paralympic athletes.
More than four million of Spain's 47 million people are handicapped, according to a support group.
"They've taken away the right of people who cannot fend for themselves to receive aid and be independent, like everyone else, which is a vital right for us," said one demonstrator, Lola Valverde, 65.
Since sweeping to power in the November 2011 election, Rajoy has introduced a series of tough spending cuts and tax hikes to slash the deficit and stabilise Spain's public finances.
Even though market pressure has eased since a peak in the summer, Spain still faces punishing borrowing costs, with interest rates exceeding five percent.
Under its draconian austerity drive, the government broke a key election commitment on Friday when it said it would not raise pensions in line with inflation in 2013.
Rajoy said Sunday that the decision was "imposed by reality," adding: "It's probably one of the hardest decisions I've had to make."
The disabled people's protest came a day after around 1,000 people who say banks cheated them of their savings took to the streets demanding that the bailed-out lenders give them their money back.
"Thieves! Where is our money?" they bellowed outside the central bank in Madrid before marching on the offices of Bankia, the ruined finance giant.
Spanish banks were brought low by the collapse of a construction boom in 2008 that threw millions into unemployment and poverty. Spain is deep in recession, with one in four workers unemployed.
© 2012 AFP
Meet the most eligible internationals in Spain at Expatica Date!
It's as easy as 1-2-3!
Access Numbers now for all your international calls. Same quality, lower rates. And best of all, you can start calling immediately. No signup, no registration. Try it now!
Expatica's Getting Started section will provide practical information on how you can open a bank account, exchange your driving licence, improve your Spanish, and more.
Here's a guide to an extensive list of groups and clubs in Madrid for expats, from sports groups to social and family gatherings.
A brief introduction to our Tax section for Spain, from help with inheritance tax to accounting advice.
Here's a short introduction to our Banking section for those living in Spain, from what to ask the experts to opening a Spanish bank account.