Spain poses six-pack rules challenge

Article reported that Spain’s deteriorating economy in early 2012 posed the first challenge to the European Commission's commitment to enforce tough new budget rules intended to repair credibility with financial markets and ease the debt crisis.

A slowdown in the eurozone’s fourth-largest economy made it almost certain that Madrid will be unable to achieve targets to cut its deficit below the European Union threshold of 3% of gross domestic product by 2013.

However, the European Commission had pledged to take full advantage of its new budget powers under the so-called six-pack rules, which call for near-automatic sanctions against eurozone governments that fail to bring budget deficits in line with EU norms.

ESO: Background information: Spain vows to press ahead with reforms http://www.europeansources.info/record/spain-vows-to-press-ahead-with-reforms/

ESO: Background information: Spanish business grows impatient for reforms http://www.europeansources.info/record/spanish-business-grows-impatient-for-reforms-spain-stops-new-energy-subsidies-in-austerity-drive/

ESO: Background Information: Memo: EU Economic governance 'Six-Pack' enters into force http://www.europeansources.info/record/memo-eu-economic-governance-six-pack-enters-into-force/

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