Brussels, 05/3/2012 (Agence Europe) - In Spain, the gap between the budget target set for 2011 (6% of GDP) and the actual deficit recorded (8.5%) is a serious matter, said the European Commission on Monday 5 March, showing little flexibility about Spain's efforts to meet its 2012 and 2013 targets.
On Monday 5 March, a spokesperson for EU Euro Commissioner Olli Rehn said that Spain had started by announcing a public deficit of between 6% and 7% in December 2011, and then reported a 2% shortfall of the target, but a few days ago, Spain started talking of a 2.5% shortfall, which is a serious matter. Before the European Commission comments on Spain's public finances, it needs to have a clear picture of the situation, requiring hard facts and consolidated figures to understand where the shortfall comes from, along with its nature, duration and measures to deal with it. The Spanish government must inform the Commission of its draft budget for 2012 by the end of March, and the European Union Statistical Office will be able to provide certified statistics in April.
Rehn's spokesperson pointed out that the spring European summit last week required all member states to “continue to respect their commitments according to the rules of the stability and growth pact. Member states under market pressure should meet agreed budgetary targets and stand ready to pursue further consolidation measures if needed.” At the summit, Spain's Prime Minister Mariano Rajoy surprised all by announcing that Spain had now set itself the target of reducing its public deficit to 5.8% of GDP (rather than 4.4%) this year, retaining the target of reducing it to 3% in 2013 (see EUROPE 10566). (MB/transl.fl)