• Sees structural cuts of 2.5% in 2013, 1.9% in 2014
• Spain in second deepest recession in history
• Slump to continue next year
• 2013 contraction will be smaller, closer to zero
• Spain still has competiveness problems
• His mission is to free Spain from Zapatero’s legacy
• Spain to take additional budget measures
• Needs to cut spending, raise tax revenue
• To improve functioning of public administration
• Public admin reform seeks austerity
• To limit duties of town halls
• 3.5 bln euros savings in public admin measures
• To standardize mayor’s salries
• To cut number of local lawmakers
• To eliminate local govt’s public companies
• Regions must take decisions to meet deficit goals
• Spain must intensify deficit cuts
• Regions must act to gain credibility
• Regions to get help financing in markets
• Public workers to lose year end bonuses
• Lawmakers must alos forego year end bonus
• Reduce public companies, foundations
• Cut ministers’ budgets by 600 mln euros
• Cut subsidies to parties, unions by 20%
• To cut job placement rebates
• Cut payments for disabled people
• Change jobless benefit system
• Parliament committee to revamp pension rules