Pressure’s growing on the Spanish government as the latest jobless figures show that nearly 5 million people are out of work in the country. The official Labour Ministry released figures today showing a 1.7 rise to 25.1%. That’s another 79,645 jobless - in what is the second consecutive monthly rise during the peak tourist season: news, which has deeper consequences for Prime Minister Mariano Rajoy’s government.
Both he and his Economy Minister are set to implement more measures to reduce the country’s budget deficit. There are fears that Spain will soon ask for a bailout to the tune of around 100 billion euros. At a press conference, EU’s Economic and Monetary Affairs head, Ollie Rehn, says Spain needs to continue with its reforms programme so it can meet the targets required for a full-scale bailout, adding that the EU/IMF is ready for any request:
Ollie Rehn says: "I have full confidence in the determination of the Spanish government to take the necessary steps to restore the Spanish economy to health and I have full confidence in the resort of people to overcome the current genesis and you can rest assured that Europe stands by Spain in its efforts."
And there are still sharks in the waters though, as investors today are preparing for a review by Moody's Investors Service of Spain's investment grade credit rating.
Written and presented by Marverine Cole.