Spanish cuts will help meet fiscal targets: EU Commission
BRUSSELS (Reuters) - New taxes and spending cuts announced by the Spanish government on Wednesday will help ensure that the country meets tough fiscal targets agreed with the European Union, the bloc's executive said.
"We do welcome the announcement of the new fiscal measures by the Spanish government today," a spokesman for EU monetary affairs commissioner Olli Rehn told a regular news briefing. "It's an important step to ensure that the fiscal targets for this year can be met."
The measures, which include a three-point rise in the main rate of value added tax (VAT) to 21 percent, are designed to reduce Spain's budget deficit by 65 billion euros by 2014.
(Reporting by John O'Donnell and Charlie Dunmore; editing by Rex Merrifield)
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