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Spain deeper in debt despite austerity

Spain deeper in debt despite austerity
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Spain’s government debt has hit a record high.

Between April and June it rose to rose to 92.2 percent of the country’s gross domestic product, the Bank of Spain said.

That is higher than the year-end target of 91.4 percent of GDP set by Prime Minister Mariano Rajoy and his cabinet.

It comes despite continued austerity, which is supposed to reduce government spending, but actually has created high unemployment leading to lower tax income and bigger social security bills for the state.

Spain’s debt is expected to rise for at least another three years and could top 100 percent of GDP.

That would be the highest level in more than a century, as Madrid struggles to reduce one of the biggest budget gaps in the eurozone and revive the economy.