Spanish confrontation with Brussels is a test for EU´s new fiscal regime.
Before the Stand-Off with Europe, Spain's Prime Minister Mariano Rajoy holds a news conference at the end of a European Union leaders summit in Brussels March 2, 2012. Photo Credit REUTERS/Yves Herman
The first test for Mrs. Merkel “budget control” policy is already there. Spain is confronting the European commission after Brussels in an early test for the EU’s new fiscal regime said that Madrid was engaged “in a serious deviation” from previous pledges of the spanish government.
Spain´s President Mariano Rajoy, confirmed that the Spanish government would fail to meet a budget deficit target this year of 4.4% of gross domestic product agreed earlier with Brussels. Rajoy has set a new target of 5.8% for this year after revealing that last year’s deficit was 8.5%.
The stand-off between the European authorities and Spain…READ MORE HERE.