World

Eurozone eases Spanish deficit target

Eurozone finance ministers on Monday gave unemployment-ridden Spain some more wiggle room in cutting its big deficit, signaling that new, tighter rules against overspending in the currency union retain some flexibility for hard-hit countries.

13.03.2012

(A) Eurozone finance ministers on Monday gave unemployment-ridden Spain some more wiggle room in cutting its big deficit, signaling that new, tighter rules against overspending in the currency union retain some flexibility for hard-hit countries.

The ministers from the 16 other states that use the euro said Spain had to make further cuts worth 0.5 percent of gross domestic product, which indicates that the country is now expected to slash its government deficit to around 5.3 percent of GDP this year from about 8.5 percent last year.