Spanish Prime Minister Mariano Rajoy hopes to meet the deficit target that his country agreed on with Brussels: "The deficit data will be published in the following weeks (...) The reduction in the primary budget deficit will increase to 3.5 per cent of GDP. (This decrease) is unheard of."

In a conference organized this morning by The Economist, the Spanish PM gave a speech entitled "Beyond austerity: the return to growth" wherein he reiterated the forecast "shared by international organisms such as the International Monetary Fund, that GDP (in Spain) will turn positive at the end of 2013 and in 2014". However, Rajoy admitted that "2013 will continue to be difficult, though not as bad as 2012" because "we have a long road ahead."

He pointed out that "doubts about the sustainability of our debt have been dispersed" and, in the Prime Minister's opinion, were based more on political issues (such as the discussions on the independence of Catalonia, election law reforms, allegations of corruption) than on economic ones.

Rajoy also admitted that he had broken his campaign promises (such as not raising taxes) but said that "I believe that I have done my duty.

"This government's commitment to implement reforms will not falter."

MG

Related share prices