Spain unveils €40bn of fresh austerity measures

The 2013 budget, the fifth round of cuts and tax hikes announced the past nine months, is in line with recommendations made by the EU in July, Spanish officials said. The proposals will see government spending fall by 8.9% next year, with such expenditure set to be monitored by a new independent budgetary authority. Bond markets reacted positively to the news, Spanish 10-year yields moving back below the 6% mark. Spain's benchmark IBEX equity index rose 1% at the open this morning. The measures suggest Spain is a step closer to an EU bailout that would, in turn, pave the way for so...