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SPAIN-ECONOMY/
RTR34THN 
July 11, 2012 
Spain's Prime Minister Mariano Rajoy gestures during a parliamentary session in Madrid, July 11, 2012.... 
Madrid, Spain 
Spain's Prime Minister Rajoy gestures as he addresses the parliament in Madrid 
Spain's Prime Minister Mariano Rajoy gestures during a parliamentary session in Madrid, July 11, 2012. Rajoy said on Wednesday he would raise the value-added tax by 3 percentage points to 21 percent as part of a large package of tax hikes and spending cuts aimed at trimming the public budget by 65 billion euros over the next 2-1/2 years. With the economy in recession, unemployment high and tax income falling, Spain is struggling to meet tough deficit cutting targets that it has agreed on with the European Union. REUTERS/Andrea Comas (SPAIN - Tags: BUSINESS POLITICS) 
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