Spain braces itself for austere 2013

<p>Spain is bracing itself for significant austerity in 2013.</p>

Spain is bracing itself for an austere 2013, as the troubled Iberian nation's government prepares the budget for next year.

Prime minister Mariano Rajoy has expressed his commitment to financial and structural reforms and in a speech in New York stated sacrifices would have to be made up and down the country in order to bring about a recovery.

The leader is set to unveil plans today (September 27th) that go to significant lengths to rescue the struggling economy and Madrid is expected to outline €39 billion (£31 billion) in tax rises, structural reforms and savings.

This announcement will follow a week of civil unrest in the capital city, which saw protestors form human chains and break down barriers around the parliament buildings, resulting in the police using force to break up the disruption.

Continuing its week-long tumble, at 09:50 BST the Madrid Ibex slipped 0.5 per cent to an index value of 7814.00 points.

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