Spain vows to stick to austerity after bailout deal

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Spain vows to stick to austerity after bailout deal

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Spain has vowed to continue with fiscal and economic reforms after tapping a 100 billion euro EU bailout.

The country’s economy ministry said on Sunday that the government would plough on with its austerity plans to slash the budget deficit, currently 8.9 percent of GDP.

Madrid said it will still be able to borrow money commercially and go ahead with two planned bond auctions, which are scheduled for later this month.

Ordinary Spaniards are angry over how ministers have handled the rescue deal.

One woman on the streets of the Spanish capital branded the deal as “a bailout for banks, not the country.”

“They criticised former prime minister Zapatero for not using the word ‘crisis’, now they struggle to use the word ‘rescue’,“she said of the centre-right government.

Another Madrid resident slammed ministers for taking the bailout money.

“We’ve mortgaged our country and democracy has no more value now. Those who give the orders are the markets, not the ones elected by the people,” he said.

Prime Minister Mariano Rajoy hailed the package as a victory for the euro.

But the single currency faces another major test next week when Greek voters will go to the polls to choose a new government.