This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Rajoy Says 'Spain's Head Out Of The Water'


MADRID (AP) â¿¿ Spain is on the mend, Prime Minister Mariano Rajoy claimed Wednesday as he revealed a drop in the government's budget deficit.

The government has been trying to heal its public finances since it came to power 14 months ago by slashing spending and raising tax. While that's come at a price for the economy â¿¿ which is in another recession and hobbled by 26 percent unemployment â¿¿ Rajoy noted it was finally bringing the deficit down to less than 7 percent of the country's gross domestic product in 2012, from nearly 9 percent a year earlier.

"Spain's head is out of the water," Rajoy told Parliament in what was his first state-of-the-nation debate since taking office in December 2011. As well as problems with the country's economy, Rajoy is also battling allegations that a slush fund was used to pay senior members of his Popular Party.

Rajoy said the deficit reduction followed "a readjustment without precedent" in the economy. Official deficit figures are expected over the coming weeks.

Spain last year pledged to European authorities it would cut its deficit to 6.3 percent after the 2011 figure was found to have soared to 8.9 percent, nearly three times the limit for European Union countries using the euro currency.

In his pursuit of the promised deficit reductions, Rajoy has broken every major election campaign promise, stirring much social unrest and triggering two general strikes over the past 14 months.

On Wednesday he admitted he had failed to live up to some promises but insisted he had done his duty.

Rajoy promised "a second generation of reforms" that appeared to signal a shift in strategy â¿¿ away from growth-sapping austerity policies in favor of credit incentives and youth employment initiatives

The measures include a reduction ⿿and in some cases elimination ⿿ of social security payments by companies that hire people under 30 years of age part time. He also announced a ⿬45 billion ($60 billion) credit program for small and medium-sized companies to be funded publicly and privately.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.01 -1.90%
FB $116.43 -0.26%
GOOG $690.57 -0.06%
TSLA $238.86 -3.60%
YHOO $36.31 -0.77%


Chart of I:DJI
DOW 17,692.18 -138.58 -0.78%
S&P 500 2,054.18 -21.63 -1.04%
NASDAQ 4,754.7040 -50.5870 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs