CORRECTED: Spain says it targets deficit of 2.1% GDP in 2014

29th April 2011, Comments 0 comments

The Spanish government, fighting to hold on to market confidence and avert a possible debt rescue, announced a deficit reduction target of 2.1 percent of output in 2014, on Friday.

The government has already announced that it intends to reduce its public deficit to 3.0 percent of output in 2013.

The deficit last year amounted to 9.2 percent and the target for this year is 6.0 percent of gross domestic product, falling to 4.0 percent in 2012.

The European Union ceiling is 3.0 percent.

Spain has announced radical measures to restructure its economy, including spending cuts, privatisations and a relaxation of job protection laws in order to cut the public deficit and improve the framework for growth.

© 2011 AFP

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