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Spain Faces Deeper Cuts as Juncker Says Rajoy Plan Dead

European Union pressure on Spain to make additional budget cuts may not be enough to compel the government in Madrid to bring its deficit in line with the 27-nation bloc’s rules next year.

European finance ministers told Spain late yesterday to make cuts equivalent to 0.5 percent of gross domestic product from the 2012 budget. A request accepted by Economy Minister Luis de Guindos as part of the euro region’s fourth-biggest economy’s effort to get the shortfall within the EU’s 3 percent limit in 2013.