Spain Defies Brussels on Deficit Target
Originally published on Fox Business.
Spain set itself a softer deficit target for 2012 than originally agreed under the euro zone's austerity drive, putting a question mark over the credibility of the European Union's new fiscal pact.
Prime Minister Mariano Rajoy insisted he was acting within EU guidelines with the more lenient figure because it would still hit the European Union public deficit goal of 3% of gross domestic product (GDP) in 2013.
Spain's new 2012 target of 5.8% of GDP, was more realistic than the original goal of 4.4% but still demanding, he said.
"I'm backing austerity and aim to reduce the deficit from 8.5% to 5.8%; that's significant austerity," he said at the end of an EU summit in Brussels on Friday.
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