Spain has gone over by almost a point the government deficit limit allowed by Brussels, set at 4.2% of GDP, reaching 5% in 2015, according to the finance minister today, Cristóbal Montoro. The failure to meet the target set off alarm bells at the European Central Bank, as explained by its vice president, Vitor Constancio, who insisted that the Spanish figures “surprised everyone”.
He went on to make it clear that this situation “must be revised”. In fact, it is estimated that Spain will have to make cuts worth some 22 billion euros this year. “The recently announced results surprised everyone, in particular the commission. Naturally, this should not have happened and it must be rectified, as the Commission has announced. It is, no doubt, the consequence of missing the target,” he declared during an appearance before the Committee on Economic and Monetary Affairs of the European Parliament.
The ECB will support whatever decision the Union takes on this issue. In relation to the possibility of imposing penalties on Spain for not meeting its targets, the ECB vice president said that “there are steps to take before getting to that point.” “We aren’t there yet,” he pointed out. “We support the Commission’s effort to ensure that the legal steps established for revisions like this one are applied to Spain’s case,” he added.