MADRID (AP) — Spain and Greece outlined plans Thursday to cut spending and raise taxes to convince international lenders and financial markets they are on the right track to cut their deficits.
The austerity measures have hit citizens with wage cuts and fewer services, and left their economies struggling through recessions as reduced government spending has undermined growth.
In some countries, the austerity measures have sparked violent protests but governments have pressed on with the cuts and reforms to get the eurozone financial crisis under control — and to get help from other countries and organizations.
The country is struggling in a recession to prop up its shaky banking sector burdened with toxic assets and support its heavily indebted regional governments.
Finance Minister Yiannis Stournaras said the long-delayed agreement placed him in a stronger negotiating position ahead of talks Monday with representatives from the country's bailout creditors, who will have the final word on the cutbacks.
The conservative-led coalition has been debating the new cutbacks for about two months, but a deal was delayed by opposition from the two center-left junior partners — coupled with disagreements with European Union, International Monetary Fund and ECB austerity inspectors.
The austerity measures have hit citizens with wage cuts and fewer services, and left their economies struggling through recessions as reduced government spending has undermined growth.
In some countries, the austerity measures have sparked violent protests but governments have pressed on with the cuts and reforms to get the eurozone financial crisis under control — and to get help from other countries and organizations.
The country is struggling in a recession to prop up its shaky banking sector burdened with toxic assets and support its heavily indebted regional governments.
Finance Minister Yiannis Stournaras said the long-delayed agreement placed him in a stronger negotiating position ahead of talks Monday with representatives from the country's bailout creditors, who will have the final word on the cutbacks.
The conservative-led coalition has been debating the new cutbacks for about two months, but a deal was delayed by opposition from the two center-left junior partners — coupled with disagreements with European Union, International Monetary Fund and ECB austerity inspectors.
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