Spain's next prime minister says his conservative government wants to reduce the country's deficit by euro16.5 billion ($21.6 billion) next year and warns that very hard times lie ahead.
Mariano Rajoy spoke to Parliament but did not say what mix of spending cuts or tax hikes might be used to get the deficit down to Spain's stated goal of 4.4 percent of GDP in 2012.
Rajoy reviewed Spanish economic figures such as its jobless rate, which he said had risen to around 23 percent. He said "the panorama could not be more somber."
Rajoy's Popular Party won Nov. 20 elections by a landslide. He has a comfortable majority in Parliament and will be voted in as premier on Tuesday, then formally take office Wednesday.
Rajoy has spoken very little since the election, making Monday's speech keenly awaited in Spain and abroad. Spain's borrowing costs have soared in recent months as investors became increasingly wary of Spanish debt, and any of his statements could affect the markets.
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