One day after Spain's banks were granted a $125 billion bailout and Spain's deficit-cutting targets were expanded by a year, the Spanish government announced a new round of cuts. The government says that the $80 billion in spending cuts and tax increases were necessary for the economy. This will be the fourth round of cuts since November, when the current government took power. The cuts will lead to layoffs at the local level, as well as cuts in vacation and bonus pay for public employees and a decrease in unemployment benefits. The announcement came in the midst of a protest by miners, who have been on strike since May against a 63% cut in subsidies by the government.
See "More economic pain in Spain as government unveils new cuts", Lauren Frayer, Los Angeles Times, July 11, 2012