Spanish prime minister, Mariano Rajoy, today announced a series of austerity measures as the price of the European bailout of Spain's banking sector. Read on for a round-up of the main measures:

• Reform of public administration, cutting €3.5bn
• A "drastic reduction" in the number of local public companies, and a reduction in the number at national level
• "Corrective mechanisms" for regional spending, and a new liquidity mechanism to help fund Spain's regions
• Civil servants benefits will be cut, and senior workers will lose the Christmas bonus. Further cuts at ministries are planned.
• Funding for unions and political parties will fall by 20%
• A review of unemployment benefits
• VAT will rise to 21%, from 18%. Property tax breaks will be eliminated, and 'indirect taxes' on energy will be raised
• Income tax will be cut
• State assets including airports and railways will be sold off

It looks like tough times ahead.

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