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Rajoy Struggles for Credibility as Spanish Deficit Misses Target

  • Shortfall hit 5.2% in 2015 against EU-set target of 4.2%
  • Commission reiterates concerns about Spanish fiscal record

Caretaker Prime Minister Mariano Rajoy, who made his record on the economy the focus of his re-election bid in Spain last year, is struggling to retain his credibility.

With his rivals negotiating to oust him from office, Rajoy faces the prospect of Spain being subjected to unprecedented European Union sanctions over its budget deficit, and his budget chief told reporters Thursday the prime minister had issued an estimate for the 2015 shortfall last month without consulting the team running the public accounts.