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A Spanish flag flutters in the wind on the top of Madrid's city hall as rain clouds appear in the background September 26, 2012. Spain will announce a series of economic reforms and a tight 2013 budget on Thursday, aiming to avoid the political humiliation of having Brussels impose conditions on a request for an international bailout.
A Spanish flag flutters in the wind on the top of Madrid's city hall as rain clouds appear in the background September 26, 2012. Spain will announce a series of economic reforms and a tight 2013 budget on Thursday, aiming to avoid the political humiliation of having Brussels impose conditions on a request for an international bailout.
(Sergio Perez/Reuters)

ECONOMY

Spain braces for further austerity measures

Spain is poised to unveil a new austerity program that threatens to trigger more street violence and deepen an already crippling recession, pushing the euro region’s fourth-largest country closer to a bailout.

The centre-right government of Prime Minister Mariano Rajoy will unveil the austerity budget Thursday, just two days after thousands of protesters clashed with police in Madrid and the region of Catalonia announced a snap election that could be the opening shot of its bid for full autonomy.