On Thursday Rajoy said he was determined to stick to austerity measures even though they are aggravating the economic slump and calls for growth measures are on the increase around Europe.
The government expects labor reforms passed in the first quarter that make it cheaper for firms to hire and fire to produce results next year. Many firms have taken advantage of new rules to lay off more staff.
...and at home GDP growth at a sad 2.2%. It's a complete mystery why this is happening.
Real federal government consumption expenditures and gross investment decreased 5.6 percent
in the first quarter, compared with a decrease of 6.9 percent in the fourth. National defense decreased
8.1 percent, compared with a decrease of 12.1 percent. Nondefense decreased 0.6 percent, in contrast to
an increase of 4.5 percent. Real state and local government consumption expenditures and gross
investment decreased 1.2 percent, compared with a decrease of 2.2 percent.