Spain's economy minister says the country's austerity budget due Friday will reassure the rest of Europe that the country is not a candidate for a bailout.
Economy Minister Luis de Guindos spoke Friday in Copenhagen as he entered an informal meeting of eurozone colleagues. In Madrid, the Spanish Cabinet prepared to approve a draft 2012 budget expected to include (EURO)30 billion ($40 billion) in spending cuts and tax hikes.
That deficit-reduction package is designed to satisfy EU requirements and calm investors worried about Spain's public finances. Their appetite for Spanish debt determines the country's borrowing costs -- and the likelihood of it not being able to finance itself at an affordable rate and eventually following Greece, Ireland and Portugal in seeking a bailout.