Photo: Spanish Economy
Spain’s efforts to trim its budget deficit and put its financial house in order are producing “positive signs,” the Iberian nation’s economy minister said here Monday in an appearance before the European Parliament.
Luis de Guindos expressed his confidence Monday in the way Spain is headed now, despite the European Commission’s forecast that the Spanish government will run a deficit equal to 8 percent of GDP this year and 6 percent in 2013, well above Madrid’s projections of 6.5 percent and 4.5 percent, respectively.
“We’re aware that economic forecasts for Spain by international organizations are below our expectations, but those forecasts are not carved in stone,” he told Euro lawmakers.
In Spain, he said, we’re already seeing positive signs that our efforts at correcting the deficit will start producing effects in the medium term,” and pointed to the excellent prospects for Spanish exports.
He did stress, however, that the broader euro zona crisis comes on top of Spain’s own congenital economic woes.
“Spain is living up to its commitments…and suffering from being the breakwater of the euro zone,” De Guindos said, adding that “the sooner the crisis of the euro’s credibility is resolved, the sooner Spain will be back on the road to growth.”
After his appearance at the European Parliament, the minister quickly departed for a gathering of euro zone finance officials to discuss the situation in Greece.