The European Commission Vice President Olli Rehn welcomed the announcement by the Spanish government on the significant package of budgetary policy measures approved. However he regretted the sizable fiscal slippage relative to the 2011 budgetary target. He therefore asked to Spain remaining committed to the fiscal consolidation path and staying determined to correct its excessive deficit by 2013.

The Vice President of the European Commission in charge of Economic and Monetary Affairs and the Euro, Olli Rehn welcomed some of the measures recently approved by the Spanish Government such as the package of budgetary policy measures. According to the Commissioner, amounting to €15 billion or 1.5% of GDP the consolidation package is sizable and a very important step to shore up public finances and reassure financial markets through measures concerning inter alia taxes and the reform of public administration.

On the other hand, he regretted the sizable fiscal slippage relative to the 2011 budgetary target. He also stressed the need that Spain remains fully committed to the fiscal consolidation path and stays determined to correct its excessive deficit by 2013 as scheduled. According to a review published in December by the ECB, the risks to euro area financial stability increased considerably in the second half of 2011. Mr Rehn also added in his statement that overall the set of measures approved by the Spanish Government gives a much needed signal to underline the new government's determination to bring back the correction of the excessive deficit to the envisaged path within the deadline of 2013.

The Commission Vice President also highlighted that in order to reinforce the credibility of the Spanish economy and to return to a sustainable growth path, the consolidation package now approved and the comprehensive structural reform measures undertaken, in particular for the labour market and the financial sector, are essential.