The Spanish Budget 2013: pension raid may forestall sovereign bailout

Now, we come to the Spanish budget. The austerity here is a lot more real than it is in the French budget. As I have been saying for a number of weeks, the goal of the Spanish government is to present an austerity budget that gets approval from the word go, so that should Spain need to be bailed out, it would do so without having additional measures forced on it. I think this makes a sovereign bailout more likely. I aslo think this was a purely political maneuver by Rajoy to allow him to say that he has been fiscally responsible. But as we see from the protests, that is not what will win the day politically in Spain.
In terms of actual substance, you have:

Spending cuts. A spending reduction of 8.9% with numbers varying from a low of 4.2% to a high of 30% cuts to the agriculture and ju...


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