Spain: 2013 Budget Delayed

The world is waiting to see Spain’s budget for 2013. Scheduled to be released Thursday morning around 8am EST, the delay has pushed the release to 11am EST.

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A higher Spain budget is projected. Much of it is expected to be used for paying interest rates on Spain’s massive debt.

A Bank bailout is in the works but the question is, will the whole country get a Soverign bailout?

There has been around 1,900 protests in Spanish capital this year. Tuesday night was the most violent protest so far. [/column]
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It’s possible that today’s delay is due to Spain planning on how to handle the reaction of the budget release. There are concerns for further violence on the streets.

The recent months have consisted of numerous protests and demonstrations against the Spanish government and their austerity measures. Austerity measures, in this scenario, could be defined as strict measures to help the government cut expenditures. The measures are being taken in response to the Spanish debt crisis.

The Euro can be affected in a massive way by Spain’s news because of the influence of their economy on the Euro- Zone.

The budget release could hurt the Euro further unless Risk Aversion takes place in the market.

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Update

Budget details were released today after this morning’s initial delay. The budget indicates Spain will be focusing more on spending cuts rather than tax hikes.

It’s said that Spain also plans to access a 3 billion euro sum from their pension reserve for treasury purposes.

Spain’s Deputy Prime Minister Soraya Santamaria de Saenz said the government will be setting up an independent budgetary authority to keep their eyes on the government’s spending.

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Here is a great article from Kathy Lien about the possibility of a Spanish bailout in about 20 days, read it by clicking here.

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