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Spain to set deficit target for autonomous regions
Last Updated(Beijing Time):2012-03-06 18:58

Spanish central government will set the deficit target for the country's 17 Autonomous Communities on Tuesday.

The government of Mariano Rajoy last Friday set the public deficit target at 5.8 percent of GDP, higher than the 4.4 percent originally agreed with the European Union in October last year.

The deficit of the Autonomous Communities stood at 2.9 percent of GDP at the end of 2011 and Rajoy's aim is for them to lower the ratio to 1.5 percent by the end of 2012.

This means Spain's regions will bear the brunt of the next wave of spending cuts, which is certain to raise opposition in some of the 17 regions.

The Community of Catalonia, which is ruled by the Catalan nationalist Converencia I Unio, has already said that they will ask Rajoy to raise the target to 1.7 percent of GDP.

Rajoy insists that his plan is well thought out and believes that the effects of the cutbacks already introduced are beginning to be noticed.

Meanwhile, Cayo Lara, leader of left-wing party Izquierda Unida, has asked the government to introduce measures to combat fraud in large companies, claiming that the extra money raised that way would make it possible to reduce the number of cutbacks, which will affect the most disadvantaged members of society.

Source:Xinhua 
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