A spokeswoman for Spain’s PM today said it remains committed to meeting its 3% deficit target in 2013. The PM will not ask to hike the target at the upcoming EU Summit.
On Monday, his finance minister said he will seek the EU’s approval to raise deficit targets.
It doesn’t matter if they ask or not, they’ll miss the targets. Asking the EU is likely just a matter of timing and a matter of Spain wanting to borrow as much as possible before the bond market turns against them again.