AFTER an EU warning last week that the public deficit targets in Spain´s 2016 budget were unrealistic the Spanish Prime Minister defended his government´s position on Tuesday October 13.
Opponents of the conservative government in Spain have labelled the early budget as a strategy before the country´s general election this December.
Prime Minister Rajoy dismissed claims that his plans could lead to more unforeseen cuts. Speaking in New York on Tuesday he said:
“I am very confident, and the Spanish people are too, that we are going to meet the deficit.”
The Prime Minister´s remarks were bolstered by government officials on Tuesday including Finance Minister Luis de Guindos, who said:
“I am convinced we are going to meet the Spanish government´s budgetary forecasts,” referencing the deficit of 4.2 per cent of GDP in 2015 and 2.8 per cent for next year.
He said the government would save up to €8.5 billion this year mainly as a result of tax revenues. During his speech in Madrid the Finance Minister added:
“According to the latest data we have, revenues are growing more than we had estimated in the budget.”
The Spanish Industry Minister also gave a television interview in which he refuted the idea that the forecasts were published as a way of securing support before the December elections.
The government´s comments come in the light of its latest forecasts which Pierre Mosovici, EU Finance Commissioner, called ‘a bit optimistic’.