Budget deficit of Spain in 2011 jumped to 8.5% . Spain also
has the highest rate of unemployment and the European Union have sharply cut
the government budget.
Last week, the Greek obtain consent from its private
creditors to wipe out 142 billion dollars of debt from Greek to them. This
smooth the way for the minister euro zone to give their final consent for 172
new billion dollar bailout for Greece . previous Spanish deficit target of 6%
of GDP.
Economic Spain seems to be a contraction in the first quarter 2012,
after going down in the last three months of 2011. Last weekend, Spain
announced additional tax revenue target of around € 6 billion pertahun and
trimming spending € 8.9 billion in deficit reduction target of 1% in the short
term.
Rate strategist of ING , Padhraic Garvey said, the debt
crisis will still be a heavy obstacle in throughout 2012. Germany and France
will be the Euro zone will first auction of debt letter day Wednesday and
Thursday . Italy and Spain will start selling new debt next week's letter.
In the month of November last, for example figures Spanish
deficit was reported only in the range of 6% and a sharp change in 7% at the end of the year. In early
February, there are allegations that the government managed to Spanish
manipulating deficit figures for political reasons, to give sesuram may be able
to be more flexible deficit target for 2012 by the acting policy in Brussels.
But the Spanish government, protesting this issue, saying
that the deficit target set by the EU for Spain still survive in 4.4% .
Salammm trader .....!!!
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