Spain shoots self in head

Austerity package set to save $11.5bn, with 2011 deficit estimated to equal eight per cent of GDP, well above target. 

Read it at Al Jazeera (with video) Spain unveils spending cuts to tackle deficit

"Today's meeting really is designed to send a message which is that the cuts start now," Dr Nigel Townson, a professor of political science in Madrid, told Al Jazeera.

"There's no question that they're going to carry out [more] very severe cuts over the next few months."

Cristobal Montoro, the new treasury minister, announced tax increases on Friday that will focus on the wealthy, raising around 6bn euros.

Worries over Spain's public finances and a banking sector heavily exposed to a property bubble that burst in 2008, have caused the country's borrowing costs to rise sharply.

They must have missed the class on debt-deflation, if there even was one. Oh, and did I forget to mention that they already have massive youth unemployment, and the Los Indignados movement is spearheading global protests.

New conservative government looks to unveil belt-tightening programme amid massive unemployment and fears of recession.

Spain set to approve new austerity package