This is sure to hit a nerve with the Germans (who warned of the consequences of ignoring the stability pact last week): Spanish PM Zapetero says that a budget deficit of up to 8% of GDP is acceptable through 2011. The Eurogroup limit in the Stability and Growth pact is 3.0% with a little wiggle room during recessions.
If you’re gonna blow the upper limit, you may as well, make it worthwhile, seems to be the Spanish thinking…
