Spain's budget deficit

Spain mounting deficit is currently pushing the limits of the European Unions (EU) guide lines. In A statement released after the governments weekly cabinet meeting, it was announced that the governments deficit was provisionally estimated at 11.4%. under the rules of the EU, which Spain and other European contries must adhere to, a state budget has to be no larger then 3%. the EU has given Spain until the year 2013 to bring their deficit back under these guidelines. the main driving factor of Spain's current economic problems is the above average unemployment rate of 19.5% when compared to Europe's average of 10%. In fact, Spain has set the record for the highest unemployment rate in the region. In 2010 Spain began its term of presidency for the EU, further shining the spotlight of the countries current economic difficulties. Although Spain is currently facing major issues due to their economic budget deficit, Greece is also facing similar debt issues, having a budget deficit of 12.7% for the fiscal year. Spain's current economic difficulties are a direct result of the crumbling of the construction industry and housing market. In order for Spain to get its deficit back under the EU's guidelines, it will need to work directly with its regional and municipal governments. We will see what the future holds for Spain's budget deficit.

Source citation: http://www.marketwatch.com/story/spain-takes-aim-at-its-soaring-budget-deficit-2010-01-29?reflink=MW_news_stmp