The Spanish government is sure of the possibility of reaching the objective of bringing the public deficit to 6% of GDP by the end of 2011, said Prime Minister Jose Luis Rodriguez Zapatero. The target will be achieved thanks to the new measures launched last week, which will also support the creation of new jobs, Zapatero said speaking to Parliament. The prime minister said the European Central Bank's bond-buying program could only be transitory, emphasizing that the past two months' bond auction saw significant participation from foreign investors.
According to Zapatero, the recent increase in interest spreads on Spanish sovereign debt relative to German ones is not justified. The Spanish economy is growing despite high market volatility, but the turmoil risks prolonging the economic crisis. Spain has pledged to reduce its deficit to 6% of GDP from 9,2% in 2010.
