April 24, 2013

Brussels to give Spain two more years on deficit as austerity loses its shine

Amid pressure from the IMF and faced with the fact that output in the euro zone as a whole is shrinking, the European Commission seems to be relaxing its obsession with austerity and is moving increasingly toward the idea that Spain should be given two more years to bring its public deficit back within the European ceiling of three percent of GDP.

Setting the tone for this shift in emphasis, EC President José Manuel Barroso on Monday said: "While I think this [austerity] policy is fundamentally right, I think it has reached its limits." Read more.

El País

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