Spain would comply with agreed deficit targets

European Commission President Jose Manuel Barroso on Monday said he was confident that Spain would meet deficit cut targets for 2012, three days after Madrid hiked its deficit target on Friday. "I am sure that Spain will comply with its commitments to the finical stability," Barroso said after meeting with Austrian Chancellor Werner Faymann. He noted that Madrid had not yet announced its 2012 budget. The Spanish government on Friday said its budget deficit would reach 5.8 percent of its GDP this year, compared to an EU target of 4.4 percent. The crisis-battered country is expected to cut its deficits to three percent in 2013. Meanwhile, Austrian Chancellor Werner Faymann expressed optimism towards an EU intergovernmental pact signed by its 25 member states last week, despite uncertainties such as a possible referendum in Ireland and a possible change of government in France. "Two years ago, nobody would have believed that we conclude a fiscal pact with debt brakes and budget discipline," he said. Barroso, in the meantime, called for concerted efforts to consolidate the political and monetary union. Europe must cultivate the financial stability together, Barroso said. Barroso also met Austrian President Heinz Fischer on Monday afternoon.