As a percentage of GDP, the Spanish government debt surged to 84.2 percent in 2012 from 69.3 percent in 2011.
The increase in deficit is another blow to the government that stands firm on spending cuts even in the midst of recession and record unemployment. The government is expected to unveil new budget plans on Friday, emphasizing on growth.
Prime Minister Mariano Rajoy has requested the EU to relax its deficit target for 2013 to 6 percent of gross domestic product compared to the previous goal of 4.5 percent
Helped by widespread austerity measures, the combined budget deficit of the euro area fell to 3.7 percent of GDP from 4.2 percent in 2011. Meanwhile, government debt increased to 90.6 percent of GDP, above the 60 percent ceiling, from 87.3 percent in the previous year.
In February, the European Commission estimated the Eurozone deficit to narrow to 3.5 percent of GDP in 2012 and then to fall to 2.8 percent in 2013.
The EU27 budget gap also declined in 2012, to 4 percent of GDP from 4.4 percent a year ago. The lowest government deficit in percentage of GDP was registered by Estonia, followed by Sweden, Bulgaria and Luxembourg. Only Germany posted a budget surplus at 0.2 percent.
The French budget deficit came in at 4.8 percent of economic output, down from 5.3 percent in 2011, but exceeded its official target of 4.5 percent. At the same time, Italy's shortfall narrowed to 3 percent ceiling from 3.8 percent a year ago.
The budget deficit of Portugal narrowed to 6.4 percent in 2012 and that of Ireland declined to 7.6 percent.
by RTT Staff Writer
The Spain Records Largest Budget Deficit In EU.
Spain registered the biggest budget gap in the European Union last year, surpassing Greece, while austerity measures reduced the combined deficit of euro area nations.
Data released by Eurostat on Monday showed that Spain's budget deficit widened to 10.6 percent of gross domestic product in 2012 from 9.4 percent. The 2012 shortfall was also bigger than the EU estimate of 10.2 percent.
Seventeen EU member states registered deficits higher than the maximum ceiling of 3 percent of GDP. The budget deficit of Greece increased to 10 percent from 9.5 percent in 2011.
As a percentage of GDP, the Spanish government debt surged to 84.2 percent in 2012 from 69.3 percent in 2011.
The increase in deficit is another blow to the government that stands firm on spending cuts even in the midst of recession and record unemployment. The government is expected to unveil new budget plans on Friday, emphasizing on growth.
Prime Minister Mariano Rajoy has requested the EU to relax its deficit target for 2013 to 6 percent of gross domestic product compared to the previous goal of 4.5 percent
Helped by widespread austerity measures, the combined budget deficit of the euro area fell to 3.7 percent of GDP from 4.2 percent in 2011. Meanwhile, government debt increased to 90.6 percent of GDP, above the 60 percent ceiling, from 87.3 percent in the previous year.
In February, the European Commission estimated the Eurozone deficit to narrow to 3.5 percent of GDP in 2012 and then to fall to 2.8 percent in 2013.
The EU27 budget gap also declined in 2012, to 4 percent of GDP from 4.4 percent a year ago. The lowest government deficit in percentage of GDP was registered by Estonia, followed by Sweden, Bulgaria and Luxembourg. Only Germany posted a budget surplus at 0.2 percent.
The French budget deficit came in at 4.8 percent of economic output, down from 5.3 percent in 2011, but exceeded its official target of 4.5 percent. At the same time, Italy's shortfall narrowed to 3 percent ceiling from 3.8 percent a year ago.
The budget deficit of Portugal narrowed to 6.4 percent in 2012 and that of Ireland declined to 7.6 percent.
by RTT Staff Writer
As a percentage of GDP, the Spanish government debt surged to 84.2 percent in 2012 from 69.3 percent in 2011.
The increase in deficit is another blow to the government that stands firm on spending cuts even in the midst of recession and record unemployment. The government is expected to unveil new budget plans on Friday, emphasizing on growth.
Prime Minister Mariano Rajoy has requested the EU to relax its deficit target for 2013 to 6 percent of gross domestic product compared to the previous goal of 4.5 percent
Helped by widespread austerity measures, the combined budget deficit of the euro area fell to 3.7 percent of GDP from 4.2 percent in 2011. Meanwhile, government debt increased to 90.6 percent of GDP, above the 60 percent ceiling, from 87.3 percent in the previous year.
In February, the European Commission estimated the Eurozone deficit to narrow to 3.5 percent of GDP in 2012 and then to fall to 2.8 percent in 2013.
The EU27 budget gap also declined in 2012, to 4 percent of GDP from 4.4 percent a year ago. The lowest government deficit in percentage of GDP was registered by Estonia, followed by Sweden, Bulgaria and Luxembourg. Only Germany posted a budget surplus at 0.2 percent.
The French budget deficit came in at 4.8 percent of economic output, down from 5.3 percent in 2011, but exceeded its official target of 4.5 percent. At the same time, Italy's shortfall narrowed to 3 percent ceiling from 3.8 percent a year ago.
The budget deficit of Portugal narrowed to 6.4 percent in 2012 and that of Ireland declined to 7.6 percent.
by RTT Staff Writer
