Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Rehn Calls on Spain to Spell Out Deficit-Reduction Measures

Don't Miss Out —
Follow us on:

Feb. 14 (Bloomberg) -- European Union Economic and Monetary Commissioner Olli Rehn urged Spain to spell out how it will cut the budget deficit in 2012 after missing last year’s goals.

“When it comes to deficit reduction in 2012, the Spanish authorities have clearly stated their commitment to restoring sustainable public finances,” Rehn told reporters today in Strasbourg, France. “We expect the Spanish government to substantiate the measures announced recently.”

Rehn said the EU wants Spain to “move quickly in the preparation of the 2012 budget in order to meet fiscal targets for this year” and prepare for 2013.

Spain had the euro area’s fourth-largest budget deficit in 2010 and failed to meet the target set by the EU in 2011. Prime Minister Mariano Rajoy now has to nearly halve the shortfall in one year to get the nation back on track while fighting a second recession in two years.

Media reports that the EU is considering sanctions against Spain are “incorrect and misleading,” Rehn said.

Rajoy, whose People’s Party government took over from the Socialists in December, has said he’ll present a budget for 2012 after the EU’s growth forecast for Spain is released on Feb. 23. He has increased taxes and reduced public spending to cut the deficit by 15 billion euros ($20 billion).

Moody’s Investors Service yesterday said it is “skeptical” the nation can trim the gap to 4.4 percent of gross domestic product as pledged by Rajoy. Moody’s said it expects the general government budget deficit to remain between 5.5 percent and 6 percent this year.

The adjustment Spain is faced with is “unprecedented” Moody’s said, estimating the deficit must be reduced by around 40 billion euros.

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.