The new Minister for the Economy, Luis de Guindos, has said today that Spain is currently in a recession, and is likely to continue with negative growth at least until the middle of 2012.
The shocking admission from the new government comes as it prepares the nation for a massive, sweeping round of cuts this Friday 30th. Rajoy has said he will cut some 16,5 billion euros from the budget for next year, freeze salaries and government hiring in an effort to reduce headcount and generally make sure that 2012 is an austere year. Still, pensions are going up above inflation, which is some good news.
A cold wind is sweeping across the nation – although not before time, and these cuts are the only way for Spain to balance its books and start living within its means.