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Spain wants one more year to meet its deficit target

Spain is going to ask the European Commission for one more year to reach its public deficit goals, right after failing with the 2015 deficit mark and increasing the probability of further spending in order to drastically neutralize the budget gap.

Last month Spain posted a 2015 deficit of up to 5% of its economic output. It appears to be one of the most impressive in the negative sense in the EU and even higher than European average of 4.2%.  

In order to reduce it to the 2016 target of 2.8% of GDP, Spain will require finding approximately 23 billion euros and this could be probably achieved vie spending cuts and tax hikes.     

The economy ministry refused to comment on the newspaper post, that referred to government sources, telling that Luis de Guindos, Spain’s current economy minister would include updated economic projections in the country’s stability program to be disclosed to Parliament on April 19.  

Those quite unpopular austerity measures taken during the economic downtime made many voters to turn away from traditional Spanish political parties during the December 20 election, thus depriving Spain of the required majority to form a government.    

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