Spain Gears Up For Austerity Under New Government

Spain gears up for austerity under new government Associated Press Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Updated 02:46 a.m., Friday, December 30, 2011 MADRID (AP) — Spain's new conservative government is set to unveil its first austerity measures later Friday as it tries to reassure markets that it has a plan to get a grip on its public finances at the same time as kickstarting an economy saddled with sky-high unemployment. Fears over Spain's public finances and a banking sector heavily exposed to a real estate bubble that burst in 2008 have caused Spain's borrowing costs to soar amid fears it could end up suffering the same fate as bailed out Greece, Ireland and Portugal. The rest of the measures expected Friday will apparently be an early taste of the bitter medicine to come — a freeze on civil servant wages hiring in most areas, except security forces. [...] ministries will be told to tighten their belts, again.