Spain misses 2015 deficit target despite recovering economy

Staff Writer
Columbus CEO

MADRID (AP) — The Spanish government says it failed to meet its budget deficit target last year despite a recovering economy.

Spain's 2015 deficit hit 5.2 percent of annual economic output despite a pledge to the European Commission for a 4.2 percent deficit.

The Commission has warned for months that Spain would probably overshoot the target and Acting Spanish Finance Minister Cristobal Montoro on Thursday blamed the overspending on Spain's autonomous regions.

Only three of 17 regions met their spending targets as the deficit hit 56 billion euros ($63.4 billion).

The result was announced as Spanish political parties struggle to form a government following an inconclusive Dec. 20 election that left the Popular Party in charge of a caretaker government.

It won the most votes but fell short of its previous parliamentary majority.