Spain admits it will not meet deficit targets, risking hefty fines from EU

SPAIN’S finance ministry has informed the European Commission that it will miss its deficit targets.

The country has forecast its deficit to be 3.6% of GDP come the end of 2016, missing the goal of 3.1%.

It noted the country’s ensuing political deadlock, which has seen two inconclusive elections inside a year and no government for over nine months.

Brussels had let Portugal and Spain off the hook in July when it debated whether or not to impose potentially crippling fines for having a budget deficit of more than 3.0%.

It ruled that both were attempting to get their houses in order, and told them to stay on a path of ‘fiscal consolidation’.

Brussels has not yet commented on the latest forecasts, but it could see Spain face billions of euros worth of fines.