EC: Spain will not meet its obligations to reduce budget deficit

EC: Spain will not meet its obligations to reduce budget deficit


Previously, the government of Spain presented to the European Commission a plan that provides for GDP growth in 2015 at 3.3%, but the actual numbers turned out to be other. In the EC believe that the budget plan of Spain is at risk of failure.

MADRID, 12 Oct. The European Commission demanded from the authorities of Spain as soon as possible to submit a new plan to cut the deficit in 2016, as previously presented to the budget it considered too optimistic.

The EC believes that Spain may not meet its obligations to the EU to reduce the budget deficit, according to the Agency Europa Press.

Earlier, the Spanish government has presented in Brussels a plan that provides for GDP growth in 2015 at 3.3%, and in 2016 — 3.1%, while the budget deficit, according to official Madrid, will amount to 4.2% of GDP and 2.8% of GDP respectively.

However, according to forecasts by the EC, the real numbers are different. GDP growth this year will amount to 3.1% and in 2016 to 2.7%. The deficit this year is 4.5%, and next year is 3.5%.

“The Commission is of the opinion that the budget plan of Spain is at risk of non-compliance… the Macroeconomic scenario of the draft budgetary plan seems too optimistic,” — said on Monday the EC.

“In this regard, the Commission invites the authorities to rigorously implement the budget for 2015 and to take appropriate measures in the field of the national budget to ensure that in 2016 the budget deficit” will be brought in line with those figures, which asks Brussels to 2.8% of GDP.