Rehn Says Spain Must Assure EU on Deficit Plan to Win Delay

Economic and Monetary Commissioner Olli Rehn said Spanish Prime Minister Mariano Rajoy must convince European Union officials he can stabilize public finances before gaining extra time to cut the budget deficit.

Spain’s budget gap widened to 10.2 percent of gross domestic product in 2012, the most in three years, and will still be 7.2 percent in 2014 -- more than twice its 2.8 percent target -- as temporary austerity measures expire, the EU forecast today. Rajoy’s bank rescue program added 3.2 percentage points to the shortfall last year.