Forecasts released today by the European commission indicate that Spain will not be able to achieve the objective of reducing its public deficit to 6% of GDP by 2011 because the growth rate for next year will be significantly less than the government had predicted, expected or hoped for.
The report predicts that the public deficit in 2011 will be 6.4% of GDP because the growth rate is around 0.7%, slightly less than the government expectation of 1.3%.