Spanish Austerity Troubles

Prime Minister Mariano Rajoy announced new austerity measures for Spain, on Wednesday. "We are living in a crucial moment which will determine our future and that of our families, that of our youths, of our welfare state. This is the reality. There is no other and we have to get out of this hole and we have to do it as soon as possible and there is no room for fantasies or off-the cuff improvisations because there is no choice."

The new measures would cut nearly eighty billion dollars from the country's budget, over the next two years. They would also bring about a higher sales tax, wage cuts for federal employees, closures of government ran companies, and an increase in the retirement age.

Spain launched the new measures under an agreement with the European Union. The EU is granting the country a nearly $123 billion bailout to keep Spain's banks afloat. The entire banking industry was hamstrung when the real estate market fell.

As the fourth largest economy, in the EU, Spain's troubles resound heavily throughout Europe. With current unemployment around twenty-five percent, the country's prospects look bleak.

Rajoy blames the troubles on the previous socialist government saying, "The excesses of the past must be paid in the present." He furthermore pointed out that it was his predecessors who lost over three million jobs. His opponents have been quick to point out that before, and since his election, he promised to avoid austerity measures.

Since the announcement, riots have taken place across Spain. Injuries to protestors and police have been reported. No deaths have taken place at this time, but some believe it to be only a matter of time, as anarchist and socialist groups have begun publicly calling for revolution.