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The Basque Country will challenge a new set of austerity measures approved by the Spanish Government and present appeals in those cases in which officials consider the measures encroach upon the powers of the semi-autonomous Basque region.

Basque Premier Patxi Lopez rejected on Tuesday Spanish government's sales tax hikes and spending cuts aimed at shaving 65 billion euros and said these measures suppose a "trip to hell" and won't bring "economic growth to leave recession".

The 'Lehendakari' announced the Basque Government will present appeal against all the measures that could encroach upon the powers of the semi-autonomous Basque region but also said there will be other measures such as the scrapping of a customary Christmas payment for civil servants that the Basque Government will have to accept.

The Spanish government's measures include a 3-point hike in the main rate of Value Added Tax on goods and services to 21 percent, cuts in unemployment benefits and civil service pay and perks.

Other measures outlined last week included further cuts in government spending beyond the reductions already outlined in the 2012 budget, wage cuts for civil servants and members of the national parliament, further closures of state-owned companies, tax deductions for homeowners to be scrapped, a 30 percent cut in the number of town councilors, changes to unemployment benefits designed to encourage jobless people to seek work quickly and 20 percent cut in government subsidies to political parties and labor unions.