17/10/2017 (Agence Europe) – The draft budget that the Spanish government submitted to the European Commission reduces growth forecasts from 2.6% to 2.3% of GDP for 2018, but policy remains unchanged due to the Catalan crisis. The government feels that the Spanish public deficit will be reduced to 2.3% of GDP rather than the initially forecast 2.2%. The slightly weaker economic performance is due to the risk to the economy of the political crisis in Catalonia (see EUROPE 11884), but should not prevent Spain from exiting the excessive deficit proceedings unless the Catalan crisis really materialises. Spain and France are the last eurozone nations to be subject to excess deficit proceedings. (MB)