Spain unveils €27bn savings package

Spain’s government has unveiled a €27bn deficit-reduction package including spending cuts and tax hikes on large companies, as it scrambles to convince the EU and investors that it will not need a bailout.

Deputy Prime Minister Soraya Saenz de Santamaria said the 2012 draft budget calls for cutting central government ministry spending by an average of nearly 17% and freezing civil servant wages. Overall government spending will be cut by €17bn .