The rebellious stand didn’t last very long, Prime Minister Mariano Rajoy deciding to accept an amended budget deficit target of 5.3% ‘suggested’ by Brussels.
The Spanish government initially rejected the deficit target set by the EU and announced its own, higher target of 5.8%. The step-down will, according to the Prime Minister, affect growth in the short term but said he is keen to maintain ‘the highest level of coordination and consensus’ with European partners.
The additional burden will be a further €5,000 million in spending cuts.