MercoPress. South Atlantic News Agency

Congress votes Rajoy PM who anticipates even tougher austerity measures

The new Spanish leader

Spanish lawmakers voted Tuesday to make conservative leader Mariano Rajoy the new prime minister, approving his program of sweeping budget cuts and tough economic reforms.

Facing urgent pressure to fix Spain's economy, with five million people unemployed and warnings of a fresh recession looming, Rajoy, 56, has vowed to create jobs, clean up banks and reassure investors over the country's finances.

For Spaniards, this means above all a deepening of spending cuts that have already brought thousands onto the streets in protest.

Rajoy's warnings of austerity did not stop his Popular Party winning the November 20 general elections and seizing control of the 350-seat Congress, which on Tuesday voted by a majority of 187 to install him as premier.

The speaker of the house, Jesus Posada, declared Rajoy the winner after members of parliament stood up one by one to declare their votes, with 149 voting against him and 14 abstaining.

“I know that things are going to be difficult, but I am keen, I have hope and determination to take Spain forward,” Rajoy told reporters as he left the parliament.

He said he would announce his government after he is sworn in by King Juan Carlos on Wednesday. Government ministers will formally take office Thursday and will hold a first cabinet meeting the next day.

In a speech to parliament on Monday, he gave the first details of his plans to cut the deficit and reassure the markets on which Spain borrows money to finance its debt.

He vowed to slash the public deficit by 16.5 billion Euros through public spending cuts, with only pensions escaping the knife.

“A government cannot do absolutely everything,” Rajoy said Tuesday after the parliamentary vote. “A government is there to create conditions for people to be freer, so that people can work and generate well-being, wealth and jobs.”

Rajoy had vowed to stick to Spain's targets to cut the deficit to 4.4% of GDP in 2012 and 3.0% of GDP -- the EU limit -- in 2013.

He acknowledged this week the country may miss its deficit target of 6.0% of GDP this year and warned that if the figure reaches 7.0 percent, the government will have to make 10 billion Eros more in cuts.