Speaking at a conference outside Madrid today, Spanish Prime Minister Mariano Rajoy said that Spain’s 17 autonomous regions must also accelerate their efforts to cut spending.
He is expected to unveil additional budget measures to Spain’s parliament on Wednesday including a rise in VAT, as well as benefit cuts for public sector workers.
Eurozone leaders agreed that the region’s banks should be able to directly access rescue funds. Previously emergency funding must first pass to the government, who would then divert the money to its banks. That way, governments would be forced to take on additional debt which risked a rise in borrowing costs.