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Latino Daily News

Tuesday January 22, 2013

Spain Did Not Meet 2012 Deficit Goals EC Assumes

Spain Did Not Meet 2012 Deficit Goals EC Assumes

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The European Commission said in a report issued Tuesday that it was assuming that Spain did not achieve the goal of reducing its public-sector deficit to less than 6.3 percent of the gross domestic product in 2012.

“Fiscal consolidation advanced in the third quarter, but the deficit goal for 2012 probably will not be met,” the European Commission said.

This was the European executive body’s second evaluation of Spain’s compliance with the conditions linked to the financial assistance program approved in July 2012.

The deterioration in Spain’s economic situation has made it difficult to reduce the budget deficit from the 8.9 percent of GDP registered in 2011 despite the reforms implemented by the government.

Spain was supposed to achieve deficit targets of 6.3 percent of GDP in 2012 and 4.5 percent of GDP in 2013, allowing the country to get below 3 percent of GDP in 2014 and fulfill the terms of the European Stability Pact.