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Spain Says Deficit Target Must Wait 2 More Years Amid Slump

Spanish Prime Minister Mariano Rajoy sought a two-year extension to meet European Union deficit rules, as he lowered his growth forecast and predicted little relief from a record 27 percent unemployment rate.

Rajoy’s Cabinet at a meeting in Madrid today approved a plan to cut the shortfall of 10.6 percent of gross domestic product back within the EU limit of 3 percent by 2016 instead of 2014 as demanded by euro-area governments. The European Commission endorsed the plan in a statement on its website.