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CUTBACKS

Prime minister warns of fresh cuts in “some budget items” to reduce deficit

No plans to raise VAT or the minimum wage, says Rajoy

Prime Minister Mariano Rajoy said Tuesday that a new batch of measures aimed at reducing the public deficit, and which the government is due to unveil on Friday, will contain spending cuts in a “few budget items,” without revealing the areas they will affect.

Speaking at a press conference with visiting Slovak Prime Minister Robert Fico, Rajoy said that “cutting public spending is to no one’s liking,” but added that cutbacks were “absolutely necessary” to guarantee the government’s project bears fruit. He insisted the cuts would not be of the same magnitude as those made last year.

The prime minister said there are no plans for the moment to further raise the personal income and value-added tax rates, although he conditioned this pledge to the evolution of the economy and the deficit.