FRANKFURT (Reuters) - Fiscal tightening in Spain has come to a halt, the European Commission and the European Central Bank said in a joint statement on Tuesday, warning that the country’s deficit was amongst the highest in the euro zone.
“The government debt to GDP ratio decreased slightly in 2015 but its high level remains a burden for the economy,” the two institutions said, after examining Spain’s economy.
“The needed progress on fiscal consolidation has come to a halt, with part of the structural adjustment implemented in earlier years being reversed,” they said.
“As a result, the deficit target of 4.2 percent has been missed by a large margin and the 2015 general government deficit is among the highest in the euro area.”
Reporting By John O'Donnell; editing by Francesco Canepa