Spaniards pay more in medicine costs and tuition fees

Spaniards will face increased costs for medicine, rises in university fees, and teachers will see longer working hours as part of austerity measures announced by the Conservative government yesterday.

Education and health care took the biggest hits in the €10 billion (£8.2bn) of spending cuts and increased fees as part of a drive to reduce its deficit.

The cuts will include a crackdown on so-called health tourists, who went to Spain to use its universal health care system. In 2009 alone, abuse of the system cost the government €900 million, health minister Ana Mato said after a cabinet meeting. Another measure was to stop immediate entitlement to healthcare for undocumented immigrants, which is expected to save the government €500m.

Speaking on the eve of the meeting, prime minister Mariano Rajoy said the measures were necessary because state coffers were running dry.

“It’s necessary, imperative because at this moment there is no money to pay for public services,” said Mr Rajoy. “There’s no money because we have spent so much over the last few years.”

The measures also include hikes in fees for over-the-counter medicines.

In education, the government approved increases in university fees, raised pupil-teacher ratios in schools and working hours for teachers. Spain’s regional governments mostly control education and health, but they are not likely to oppose the new measures as most are run by Mr Rajoy’s ruling Popular Party. Unions have announced protests for 29 April.

The latest package is part of the government’s efforts since taking office in December to reassure the European Union and investors that it can reduce a deficit from 8.5 per cent in 2011 to 3 per cent next year.