Zapatero addresses the World Economic Forum

Zapatero yesterday described Spain as a ‘serious and achieving’ country, and claimed that the public deficit will be reduced to 3% of G.D.P. by 2013, therefore meeting the terms of the EU stability agreement.

The Spanish Prime Minister was addressing the World Economic Forum in Davos, when he continued to say how ‘Spain as all the countries in the Eurozone, has the responsibility to meet the Stability and Growth Pact of the EU, as it has done since the start of the Euro’. He also defended criticism of Spain for their high deficit and unemployment figures.

The PM countered that the financial system of the country was a good example of one that had ‘survived the recession well’ and it was ‘slightly shocking’ that certain opinions have been expressed ‘seeing what has happened in other countries’.

He went on to admit that their would need to be an ‘important restructuring’ of the caja savings banks within the coming months in order ‘to adapt to the new size of the economy’, and claimed that Spain would meet its responsibilities with the European Union. Zapatero ended by telling the forum that later in the day the Government would be announcing it’s austerity plan and also proposes to reform to the Social Security system.