Summary Box: Spain edges toward economic abyss
HOW BAD IS IT?: It is going to be a momentous week in Spain, considered by many to be the nation most at economic risk in the European Union.
TGIF?: Much of the nation will shut down Thursday during a general strike against labor market reforms that will make it easier for companies to fire employees, as well as new incentives for them to hire. On Friday, new center-right Prime Minister Mariano Rajoy is expected to unveil about €30 billion ($40 billion) in spending cuts and tax hikes. The cuts come just three months after a €15 billion austerity package that spared the country from being bailed out like Greece, Portugal and Ireland.
WHAT NEXT?: There have been few hints about the newest round of belt-tightening, but economists foresee new pay cuts or freezes for government workers, teacher layoffs and new pay requirements for health care. Infrastructure projects will likely be delayed, and there could be new taxes for corporations. Spain is already stumbling toward recession and has an unemployment rate of nearly 23 percent.
