Summary Box: Spain unveils $36B austerity package

The Associated Press Published:

THE PLAN: Spain's new conservative government has unveiled a €27 billion ($36 billion) deficit-reduction package that it hopes will convince its partners in Europe and wary international investors that it won't need a bailout.

THE CUTS: The measures announced Friday include big spending cuts and tax increases on large companies, but there was no increase in the sales tax, as had been widely predicted.

THE JUSTIFICATION: Spain is taking drastic action to lower its debts, even at a time of recession which has seen unemployment balloon to nearly one in four. Investors remain skeptical it can avoid needing a bailout.