Forex Flash: Spain remains on the edge - BBH

Brown Brothers Harriman analysts note that Spain´s situation remains notably precarious, with EC calculations showing Spain as having ran a budget deficit of 10.2% of GDP last year, the most in three years.

They comment that it projects that a deficit this year of 6.7%, which seems a Herculean task to meet. They finish by writing, “There has been some suggestion that Spain could be given more time to reach its deficit targets, but given the lack of progress last year and some backtracking this year, it too may undermine credibility.”