Spanish Regions Agree to Central Government Deficit Plan - NYTimes.com - 0 views
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Serena Zalkowitz on 29 Oct 12Spain's 17 regional governments have agreed to stick to budget deficit targets set by the central government but regions are struggling to meet the deficit target of 1.5% gross domestic product for this year. Some of the regions have accessed an 18 billion euro emergency fund set up by the central government to meet their debt financing obligations. Furthermore, five regions have asked for a combined 15 billion euros. The regional leaders have called for a redistribution of the burden sharing between the central and regional governments in meeting deficit targets. However, Prime Minister Rajoy has stated that the overhaul should not be negotiated until next year, to avoid unnerving investors already concerned about Spain's lack of budgetary discipline.