Spanish PM warns of hard times ahead

Spain’s next prime minister has warned that very hard times lie ahead for the country as he revealed plans to cut its budget deficit.

In a keenly awaited speech to Parliament a month after being elected, conservative Mariano Rajoy did not specify what mix of spending cuts or tax hikes might be used to chop around €16bn and get the deficit down to Spain’s stated goal of 4.4% of GDP in 2012.