Mariano Rajoy lowers his aim. Spain's goal for 2012 is now to go down to a deficit-GDP ratio of 5,8%, a far more realistic goal than the ambitious 4,4% indicated by the previous executive headed by Luis Zapatero. This was announced today by the head of the government in Madrid, adding however that the final result will remain the same: the Iberian country still aims to reach 3% by next year.
A clarification that many have interpreted as an attempt in extremis by Rajoy not to lose the benevolence of his European partners, with which the Spaniard signed this morning the agreement for the fiscal compact. At the end of the European Council in Brussels, Rajoy announced the change in the target for the current year - caused by worsening GDP data - underlining that the decision pertains to the "sovereignty" of the country.
But Europe has its weight, and it makes itself felt. In fact, the Council did not accept Spain's request to delay the adoption of a new budget package to compensate for the higher-than-expected deficit. Without new austerity measures and spending cuts (we are talking about 30 billion euros), the 3% deficit in 2013 would remain just a dream.
