Although it is hard to believe that a politician would do such a thing [sic], the European Commission seems to be of the opinion that the Government of Mariano Rajoy inflated the 2011 deficit figure so that any economic recovery during 2012 would appear more flattering.
Brussels has continually estimated a deficit figure of 6.6% of GDP, that’s 2% lower than the figure bandied about by the Government.
The new deficit estimate was the reason that the Government increased taxes such as income tax, capital income and property tax, and cut 8,900 million euros to various ministries.
Moreover, the European Commission proposes to act against the Executive for delaying the presentation of the general budget for this year until after the March elections in Andalucia. This, argues the EU, will delay economic recovery.
As a result of non-compliance with EU agreements on deficit cuts, the Spanish government could face a fine of up to 0.1% of GDP.