Spain’s PM says will cut deficit, create jobs

MADRID: Spain’s prime minister has promised his government will reduce its budget deficit and lessen unemployment after its credit rating was downgraded by Standard & Poor’s.

In his first major speech to Popular Party members as premier and party leader, Mariano Rajoy said he was committed to making the Spanish economy grow to create employment.

Rajoy said that “rating agencies raise and lower us; we are living a difficult moment.’’

Rajoy says he would ensure public spending would be reigned in and that Spain had ended 2011 with around 5.4 million people out of work, “an astronomic figure.’’

He adds his government knew what it had to do to make the economy grow and generate employment, “and we are going to do it.’’