EU to give Spain leeway on deficit target: report

MADRID (MarketWatch)
The European Commission is prepared to as European Union finance ministers to give Spain an additional year to meet the budget deficit target of 3%, according to a report in the online edition of El Pais on Wednesday
The newspaper said it had obtained a rough draft of the copy of the economic strategy for the euro zone set to be delivered by the Commission on Wednesday
Media reports said it will issue specific recommendations for each of the 27 countries
El Pais said the EC wants to give Spain until 2014 to reach the budget deficit target of 3%, in light of its economic problems, but will also include draft recommendations on pensions, the financial system, taxes and labor reforms
A spokesperson from the Commission told El Pais that the lack of clarity over the banking sector could work against Spain's favor in getting flexibility on its deficit targets
A spokesperson from the Commission could not immediately be reached for comment.