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Rehn proposes loosening deficit targets for distressed Member States
European Commissioner for Economic and Monetary Affairs Olli Rehn said today that budget deficit targets for those Eurozone countries where economy is deteriorating significantly could be loosened, as long as they continue implementing structural reforms.
Spain might find itself among these countries as the Euroopean Commision expects the country to register a 8% deficit in 2012, 6% in 2013 and 6.4% in 2014, far from the established limits of 6.3%, 4.5% and 2.8%, respectively.
Speaking before the European Economic and Social Committee Olli Rehn added that “if growth deteriorates unexpectedly, the country may receive extra time to correct its deficit provided it carries out the necessary structural reforms aimed at boosting growth and sustainability in the medium term.”
