Zapatero: govt can meet financing costs

Spanish Prime Minister Jose Luis Rodriguez Zapatero said on Wednesday that sovereign debt auctions show the government is able to meet its financing needs as the country implements austerity measures to lower public debt.

Zapatero, speaking to reporters at a news conference in Tokyo, reiterated that the government will meet its target of reducing its budget deficit to 6 percent of gross domestic product in 2011.

As Spain struggles to emerge from recession and fend off worries over its ability to fund its debt, Zapatero has promised huge spending cuts while he tries to keep his unpopular government in power until 2012 elections.