Rajoy keeping his cards hidden on planned economic policies

The leader of the conservative opposition Popular Party, Mariano Rajoy, on Monday declined to say what he would do with the austerity measures introduced by the Socialists if the PP wins the general elections on November 20.

Speaking on the day the government decree dissolving parliament was approved, Rajoy said the PP's course of action would depend on the state of the economy at the time it takes office. Opinion polls suggest the PP will win the elections, but it is by no means certain to get an absolute majority. Because of the poll, the state budget for next year has yet to be approved. In such a case, the existing budget is prolonged until a new one is voted on.

The belt-tightening measures introduced by Prime Minister José Luis Rodríguez Zapatero's administration to rein in the budget deficit include a cut in public sector wages and a freeze in state pensions. With the help of the PP, Congress also approved the reintroduction of the wealth tax, but Rajoy on Monday also failed to unveil his plans for that excise.

"Everything depends on the economic situation," Rajoy told a news conference. "The government has set unreal economic growth forecasts. We will have to look at the forecasts when we have to take these decisions, and on the basis of that we'll see."

Rajoy criticized Zapatero for not introducing a decree to "clarify" the situation of the regions and municipalities dependent on the 2011 budget. Zapatero, who is not standing again, said his government would continue to introduce measures ahead of the elections but not any of great significance. "As to be expected, the reforms we have introduced [...] are bearing fruit," he said.