Rajoy’s Path to Bailout Clears as EU Endorses Austerity
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European Union budget enforcer Olli Rehn removed an obstacle blocking Spanish Prime Minister Mariano Rajoy’s path to a sovereign bailout, endorsing his deficit-reduction efforts as the recession deepened.
The spending cuts and tax increases Rajoy has introduced for this year and next are enough to satisfy the EU, Rehn said yesterday in Brussels. Those policies are also smothering the economy. It contracted 1.6 percent in the third quarter, more than the 1.3 percent in the previous three months, the nation’s statistics institute said today, confirming its estimate.