As Greece’s problems shed some urgency, Eurogroup ministers will turn their focus to Spain, where the government looks set to violate newly-agreed EU budget rules by missing its deficit target again this year.
Spain, the eurozone’s fourth biggest economy, planned to cut its budget shortfall to 6% of GDP in 2011, but reported an 8.5% shortfall instead.
In 2012, it was supposed to cut the deficit to 4.4% in line with an EU-wide agreement but earlier this month Spain’s new government announced that it would aim only for a cut to 5.8%, while still maintaining a 2013 goal of 3.0%.
The announcement came after unemployment in Spain hit 23%.
Eurozone officials are worried that allowing Spain to soften this year’s target would create a dangerous precedent and undermine the credibility of the recently sharpened budget rules.
Full article: Euro Focus Moves To Spain After Greek Deal (Isle of Wight Radio)