"It is necessary, imperative, because at this moment there is no money to pay for public services. ... There's no money because we have spent so much over the last few years. So we have to do this so that in the future we can get out of this situation," he said to reporters.
Spain has agreed to a spending reduction and tax increase plan meant to shrink the country's deficit by $13.2 billion, the EUobserver reported Saturday.
The austerity plan, which cuts into spending and raises fees for health and education services is prorated to exempt those who are unemployed and require less sacrifice from the poor than from the wealthy, Rajoy said.