Europe

Europe: Spain update. The Spanish govt announced its 5th austerity package in what may be a move to head off tougher conditions demanded as part of a potential European bailout. PM Rajoy’s Cabinet approved a new tax on lottery winnings and a cut in ministries’ spending as part of a €13 b central govt package to shrink the euro area’s third-biggest budget deficit. The target for 2013, which includes the regions and social security, is 4.5% of economic output compared with a 6.3% goal for this year. The measures reflect Rajoy’s attempt to balance the demands of his EU counterparts with voters demonstrating on the streets of the capital. He’ll raid the pension reserve fund to boost payments for retirees while unveiling a parcel of 43 separate measures that Economy Minister Luis de Guindos said exceed everything the EU has demanded for increasing growth.