CAIRO (dpa) – Spain's budget deficit was 8.51 per cent of gross domestic product (GDP) in 2011, higher than the government had expected, Finance Minister Cristobal Montoro said Monday. The government had earlier forecast a deficit of 8.2 per cent. Even that is well above the target of 6 per cent that had been agreed with the European Union. In order to reach the target of 4.4 per cent set for this year, Spain would have to cut spending by about 40 billion euros (52 billion dollars). Prime Minister Mariano Rajoy's government, which has already announced spending cuts and tax hikes worth 15 billion euros, considers the 4.4 per cent target impossible to reach this year, according to Spanish media reports. The government therefore intends to seek more flexible conditions from the EU. Spain's economy is currently among the weakest in the eurozone, with a recession expected and unemployment close to a record 23 per cent. BM ShortURL: http://goo.gl/Q2fZg Tags: European Dept Crisis, Spain Section: Business, Europe, Latest News
