Spain's new conservative government is set to unveil its first austerity measures later Friday as it tries to reassure markets that it has a plan to get a grip on its public finances at the same time as kickstarting an economy saddled with sky-high unemployment, AP reported. With much of the country on holiday, Prime Minister Mariano Rajoy of the Popular Party was presiding over a Cabinet meeting that will approve the first in what is expected to be a painful series of spending freezes or cuts and other reforms over the next few months. Rajoy's Popular Party won a sweeping victory in Nov. 20 elections over the Socialists and his government took power only last week. All the ministers have been named but many other senior positions have not even been filled yet. Like other troubled governments in Europe, Rajoy faces the delicate task of a deficit reduction measures in a country whose economy is expected to sink back into recession. The jobless rate is a staggering 21.5 percent, the highest rate of all 17 countries that use the euro. Rajoy has said time and time again he is determined to meet Spain's commitment to cut its budget deficit to 4.4 percent of GDP in 2012. -- SPA
