Spain’s public deficit deviation covered


The Spanish government would have already exceeded its debt auction needs by some €52 billion. BNP Paribas said in a note on Thursday that, even if the Spanish Treasury may yet sell short term paper before the year ends, the €186.13 billion gross issuance target stated in the 2012 general budget has now been surpassed. The excess was €49.9 billion before today’s auction.

Spain had to cover a 3.1 percent public deficit per nominal GDP this year, which was updated to 4.5 percent after negotiations with the European Commission. Total gross issuance had to reach €199.5 billion, but the government had placed €200.9 billion of sovereign debt as of Wednesday. “The deficit deviation,” BNP Paribas analysts explained, “has effectively been covered.”

About the Author

Victor Jimenez
London contributor at, reporting about the City and the Eurozone economies. He regularly writes for Spanish newspaper group Prensa Ibérica--some of his features include shared work with journalists of The Daily Telegraph and the BBC.

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