Rajoy expected to remove kid gloves in investiture speech

After months of keeping his cards close to his chest while the crisis quietly sunk the Socialist government, Prime Minister-elect Mariano Rajoy is expected to deliver an uncomfortable financial message on Monday, ahead of his investiture on December 21.

Aware that his message will be heard as keenly outside Spain as in it, Rajoy is due to announce that come what may, Spain will meet its deficit-reduction target in 2012. Where the cuts will be made to bring the nation's debt down to 4.4 percent of GDP next year - requiring a saving of between 15 and 30 billion euros - is unclear; Rajoy is expected to make those harsh adjustments in March after the budget has been formalized.

Until then, the PP leader will fall back on a lack of 2011 figures to maintain his counsel, although his party fears the deficit for the year is around seven percent.

Rajoy's speech is expected to contain messages of hope and confidence in the Spanish spirit of recovery and the reaffirmation that taxes will not be raised and pensions will remain unscathed.

He is thought to be pondering how to slim down government and is mooting cutting the number of ministries from 15 to 12, as well as slashing the amount of public companies and clawing back some state funding by halting investment in infrastructure.