Spanish Parliament approves first batch of austerity measures

Spain's Parliament has approved the new conservative government's first batch of austerity measures aimed at reining in the country's swollen deficit with 8.9 billion euro (11.5 billion dollar) in spending cuts.

The measures, which also include income and property tax hikes, were approved Wednesday by 197 deputies in the 350-seat lower house, where the ruling Popular Party has an absolute majority after a landslide election win on Nov. 20.

Finance Minister Cristobal Montoro said the adjustments, announced by the government Dec. 30, were severe but necessary, owing to what he called the mismanagement of the economy by the former Socialist government.

Montoro said Spain was on the point of relapsing into recession and the economy, with 21.5 percent unemployment, was stagnant.