BRUSSELS – A senior EU official says Spain is on track to meet its deficit reduction targets for 2012 and 2013, but risks not making the target for 2014.
Olli Rehn, EU monetary affairs commissioner, says Spain's effort to meet its deficit target for 2014 — 3 percent of GDP — could be hampered by weak economic growth. He says Spain's financial forecasts for that year are overly optimistic.
He said Wednesday the situation will be re-evaluated in February, but added there is no need now for the European Commission, the EU's executive arm, to take action against Spain over its excessive deficit.
"Progress is being made, even if the situation faced by many Spaniards remains very difficult," Rehn said.
He also said the plan to recapitalize Spain's banks is going well.