EU calls Spanish austerity measures an 'important step'

BRUSSELS: The European Commission welcomed a new austerity package
announced by the Spanish government on Wednesday, saying it was a key
step in Madrid's efforts to meet deficit reduction targets.
"We
do welcome the announcement of the new fiscal measures by the Spanish
government," Simon O'Connor, the commission's economic affairs
spokesman, told a news briefing.
"It's an important step to ensure that the fiscal targets for this year can be met," he said.
He
added that the European Union's executive arm looks forward to
receiving the details of the 65-billion-euro ($80 billion) packaged
unveiled by Prime Minister Mariano Rajoy to avert financial collapse.
The
measures were announced one day after EU finance ministers agreed to
extend a deadline for Spain to cut its public deficit to the EU's 3.0
percent limit by one year to 2014.
The deficit target for 2012
has been set at 6.3 percent of gross domestic product, going down to
4.5 percent in 2013 and 2.8 percent in 2014.
"We welcome the
determination indicated by the government to take measures, we welcome
the fact that the announcement has come swiftly one day after (EU
finance ministers) adopted this revised recommendation," O'Connor said.
- AFP