Spain gets controversial let-off on budget deficit

At a Eurogroup meeting held in Brussels on the 12 March 2012 Eurozone finance ministers agreed to a looser deficit target for Spain in 2012, but insisted that the fourth largest euro economy got back on track by 2013, a first test for eurozone's tougher budget rules.

• Primary Source

El País / El Mundo, 13.3.12: Spain disappointed by Eurogroup deficit demand (via PressEurop) http://www.presseurop.eu/en/content/news-brief/1617861-spain-disappointed-eurogroup-deficit-demand

El País, 14.3.12: Rajoy dresses up EU deficit wrist-slap as leftover leftist legacy http://elpais.com/elpais/2012/03/14/inenglish/1331754135_327038.html

El País, 14.3.12: PP admits to mistakes in flexing budget muscles before Brussels’ say http://elpais.com/elpais/2012/03/14/inenglish/1331753161_794064.html

Bruegel, 8.3.12: Spain and the fiscal compact http://www.bruegel.org/publications/publication-detail/publication/712-spain-and-the-fiscal-compact/

ESO: Background Information: Spain defies EU over deficit rules http://www.europeansources.info/record/spain-defies-eu-over-deficit-rules/

Council of the European Union: Press Releases: Terms of Reference on Spain, 12 March 2012 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128896.pdf

El País, 13.3.12: Madrid accepts Eurogroup decision to clip budget overshoot figure http://elpais.com/elpais/2012/03/13/inenglish/1331642799_685652.html

Deutsche Welle, 13.3.12: Eurogroup concerned about Spain http://www.dw.de/dw/article/0,,15805412,00.html

BBC News, 13.3.12: Europe fears recession more than debt http://www.bbc.co.uk/news/world-europe-17351134

EurActiv, 13.3.12: Eurozone ministers OK Greek aid, want more from Spain http://www.euractiv.com/euro-finance/eurozone-ministers-approve-greek-aid-demand-spain-news-511468

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