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9PLUS
04-05-2013, 09:29
Brussels, May 4 (IANS/EFE) Spain will be given time till 2016 to bring its budget deficit down below 3 percent of gross domestic product, in line with European Union mandates, European Commissioner for Economic and Monetary Affairs Olli Rehn said Friday.

"For France and Spain it is very obvious that it is more reasonable to have a correction of the excessive deficit over another two years," Rehn said at a press conference in which he presented the European Commission's macroeconomic forecasts for 2013 and 2014.

He said the fallout from the collapse of a long-building credit and housing bubble in Spain was weighing heavily on the economy, employment and the Spanish people.

Spain's unemployment rate hit 27.16 percent in the first quarter of this year, with the number of jobless people topping 6 million for the first time, according to the National Statistics Institute.

In the stability program it delivered last month to Brussels - which was based on the recommendations of the EC, the EU's executive arm - Spain extended its timetable for bringing down its deficit as a percentage of GDP.

Whereas Spain had initially planned to get its deficit below the 3 percent threshold by 2014, it now says it will lower it to 6.3 percent of GDP by the end of 2013, 5.5 percent of GDP by the end of 2014, 4.1 percent of GDP by the end of 2015 and 2.7 percent of GDP by the end of 2016.

In its macroeconomic forecasts for Spain, the Commission said Friday it expects Spain's deficit to come in at 6.5 percent of GDP in 2013 but then climb to 7 percent of GDP next year.

The EC forecast that the Spanish economy will contract by 1.5 percent this year before coming out of recession with slight growth of 0.9 percent in 2014.

--IANS/EFE

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Source:- http://www.business-standard.com/article/news-ians/spain-to-get-time-till-2016-to-reduce-deficit-eu-113050400124_1.html

TF1
04-05-2013, 10:23
Rajoy won't take any notice. The mayor of Madrid (PP) said a few days ago "Rajoy is making a mistake with austerity cuts; he should make even more harder ones". They have their own agenda in their two remaining years of power.

poker
04-05-2013, 16:27
They will need tho bring back the peseta to relise this .
Otherwise inpossible .

TF1
14-05-2013, 10:36
They will need tho bring back the peseta to relise this .
Otherwise inpossible .
Too late to go back now. An exit from the € at this stage would replicate Argentina's total economic collapse 12 years ago.

poker
14-05-2013, 13:43
Too late to go back now. An exit from the € at this stage would replicate Argentina's total economic collapse 12 years ago.

But the Argentine colaps came becouse they linked the peso to the dollar and did not devaluate\fluctuwate for years till it all was to mutch .

Same as Spain has the euro now and can not devaluate till it will be to late .

Fivepence
14-05-2013, 13:46
Spain won't clear her debt by 3016 unless their is debt forgiveness..............:whistle: