Budget cuts causing more strain in Spain

Demonstrators raise their hands in protest against spending cuts and the government of Mariano Rajoy on September 25, 2012 in Madrid, Spain.

Today the government of Spain is expected to lay out yet another new budget with even more cuts in it.

The government is trying to avoid asking for a full-fledged bailout like Greece. But there have been big protests this week about the cuts that are likely.

The round of austerity measures are expected to include a limit on early retirement in Spain, a freeze on public sector wages and a new tax on greenhouse gas emissions to try to raise more government revenue.

The measures are necessary as Spain continues to struggle to get its budget at a level that its European partners -- i.e. Germany -- want. But residents fear that the cuts, instead of helping Spain, will only make the economic situation there worse.

 

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