Spain will meet its deficit target, says deputy PM

Deputy Prime Minister Soraya Sáenz de Santamaría reaffirmed on Friday that the government will meet its target deficit figure of 4.4 percent of GDP by the end of the year.

The PP government number two made her statements after Finance Minister Cristóbal Montoro was quoted in a newspaper saying that the forecast was based on obsolete growth forecasts.

Rebutting Montoro, Sáenz de Santamaría said that "the government has a definite determination to comply with the deficit." She said that in the "upcoming Cabinet meetings" the PP administration of Mariano Rajoy plans on introducing a series of reforms to help the country's finances. "If the situation warrants more reforms, then we will introduce them," she said.

Rajoy's economic advisors said that Spain's deficit for the end of 2011 would be greater than eight percent of GDP ? two notches above the previous Socialist government's goal of six percent.

Sáenz de Santamaría said that Spain would meet its commitment to Brussels, saying that reducing the deficit was the key to creating jobs. With regards to the IMF forecast that Spain's economy will shrink this year and the next, the deputy prime minister said that the government would "fight" to ensure that the growth rate is much more robust.

She also ruled out any criminal sanctions for regional premiers that overspend their budgets as was suggested earlier this week by Montoro.

In another issue, Sáenz de Santamaría lodged a vocal protest against the Cuban government for allowing dissident Wilman Villar to die after a 50-day hunger strike. She called on the Castro regime to release all political prisoners.