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Spain Slashes "Growth" Outlook, Projects Higher Deficit, Delays Deficit Reduction

Tyler Durden's picture




 

It took about one week from R&R's excel error until the first European country rebelled against "austerity" (which it never implemented in the first place, but that's a different story). Moments ago Spain officially said to hell with Germany's austerity, and announced it would delay achieving Europe's deficit target by two years, pushing it back by 2 years to 2016. Oh, and it slashed growth forecasts confirming what everyone else had known: it's economy is a total disaster, and the country can finally stop pretending there is any hope for "growth" in the near, mid or long-term future.

  • SPAIN REVISES DOWN 2013 GROWTH FORECAST TO -1.3 PCT OF GDP VS -0.5 PCT PREVIOUSLY
  • SEES DEFICITS OF 6.3% vs. 4.5% EU 2013 TARGET, 5.5% vs. 2.8% EU 2014, TARGET; 4.1% vs. 1.9% EU 2015 TARGET
  • SPAIN TO DELAY DEFICIT REDUCTION 2 YEARS AS UNEMPLOYMENT RISES.
  • SPAIN REVISES DOWN DEFICIT FORECAST TO 6.3 PCT OF GDP IN 2013
  • SPAIN DELAYS REACHING EU BUDGET DEFICIT TARGET 2 YEARS TIL 2016
  • SPAIN SEES UNEMPLOYMENT AT 27.1% IN 2013, 26.7% IN 2014

Luckily, this is not a surprise: the collapse in the Spanish economy is just as bad as had been expected, so this should be good for 10-20 points this morning in the Stalingrad & Poorski 500 stock index.

Full deficit breakdown:

h/t @JCCrespoOtero

 

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Fri, 04/26/2013 - 08:08 | 3501705 ATM
ATM's picture

Wait i thought Spain had undertaken Austerity?

Fri, 04/26/2013 - 08:11 | 3501715 Bearwagon
Bearwagon's picture

And it ruined their economy. You are correct.

Fri, 04/26/2013 - 08:24 | 3501740 negative rates
negative rates's picture

Not yet, their housing bubble just burst recently, and the big suv's to get them down dirt roads havn't even been paid off yet. So the 2 year delay is base off of the US 08 crisis, all they have to do is nationalize the banks as we did in 08. Problem solved.

Fri, 04/26/2013 - 08:25 | 3501756 Bearwagon
Bearwagon's picture

You'd be correct, if they could do that. But, as far as I know, that's prohibited by EU-laws ...

Fri, 04/26/2013 - 08:38 | 3501783 negative rates
negative rates's picture

Say what? laws?? Start with the truth and you will take a different path.

Fri, 04/26/2013 - 08:55 | 3501858 Bearwagon
Bearwagon's picture

Now, that you mention it ... what was I thinking? You are correct ... regrettably ...

Fri, 04/26/2013 - 08:56 | 3501875 forwardho
forwardho's picture

Laws...

Laws....

We don't need no stinkin Laws.

Fri, 04/26/2013 - 08:37 | 3501780 Skin666
Skin666's picture

Not enough austerity is the reason their economy is fucked.

Fri, 04/26/2013 - 08:12 | 3501721 insanelysane
insanelysane's picture

You can say and achieve deficit spending if you have the means to print more fiat but can beggars be choosers?

Your move, Madame Merkel.

Fri, 04/26/2013 - 08:50 | 3501836 xtop23
xtop23's picture

What's the big freakin' deal? All they have to do is add in the "intangibles" and their debt / GDP ratio will be unicorns and lollipops again, the clouds will part revealing a glorious sunrise. and all will be right with the world. 

ps - If I have to write a sarc tag, then you need to receive a swift kick in YOUR intangibles.

Fri, 04/26/2013 - 15:36 | 3503590 Rick Blaine
Rick Blaine's picture

I never use sarc tags...

It's like explaining the punch line of a joke.

...which completely ruins the joke.

Fri, 04/26/2013 - 08:20 | 3501732 Aeternus
Aeternus's picture

Maybe if those lazy spaniards would quit taking siesta's every five fucking minutes and get back to work they wouldn't be so fuckin' broke.

 

https://www.youtube.com/watch?v=fyklt01lN_I

Fri, 04/26/2013 - 08:27 | 3501755 BandGap
BandGap's picture

Spain went in the toilet when they converted their economy to a "green" economy. They were bound to lose jobs. When the housing bubble collapsed there it was all she wrote. Lots of English tourists keeping things going on a marginal scale. Good for them.

Fri, 04/26/2013 - 08:09 | 3501708 malikai
malikai's picture

Da!

Fri, 04/26/2013 - 08:13 | 3501714 insanelysane
insanelysane's picture

US military has deployed more troops to the base in Spain, supposedly to provide rapid response for problems in Africa.  Hmmmmm, maybe not.

Fri, 04/26/2013 - 08:16 | 3501724 Rip van Wrinkle
Rip van Wrinkle's picture

The US military has deployed more troops everywhere. I wish they'd f*ck off.

 

Sorry Americans!!

Fri, 04/26/2013 - 08:29 | 3501751 GetZeeGold
GetZeeGold's picture

 

 

It's OK.....we gave Europe the President they wanted.

 

He accepted the prize for peace....and has never looked back.

Fri, 04/26/2013 - 08:41 | 3501790 Peter Pan
Peter Pan's picture

That's right. They gave him the prize for peace when peace should be the prize. No wonder everything is back the front/ upside down in this world

Fri, 04/26/2013 - 08:15 | 3501720 Dr. Engali
Dr. Engali's picture

" so this should be good for 10-20 points this morning in the Stalingrad & Poorski 500 stock index."

Lol....Forward comrad.

Seriously I thought Spain was ready to seed sovereignty a few days ago. These people don't know what the hell they are doing.

Fri, 04/26/2013 - 08:16 | 3501726 i-dog
i-dog's picture

Those in the decision making positions know exactly what they are doing. The electorate...not so much.

Fri, 04/26/2013 - 08:19 | 3501730 Dr. Engali
Dr. Engali's picture

Well that's true.

Fri, 04/26/2013 - 08:21 | 3501736 Bearwagon
Bearwagon's picture

The masters, telling those in the decision making process what to do, know exactly.

FIFY

Fri, 04/26/2013 - 08:26 | 3501760 i-dog
i-dog's picture

That's what I meant...but thanks for stating it more clearly. :)

Fri, 04/26/2013 - 08:22 | 3501746 negative rates
negative rates's picture

But we do, huh?

Fri, 04/26/2013 - 08:18 | 3501728 VonSalza
VonSalza's picture

UNEMPLOYMENT 26.7% IN 2014, this is great news

Fri, 04/26/2013 - 08:26 | 3501762 NEOSERF
NEOSERF's picture

Yes, someone fell asleep on their computer and hit a "6", replacing the "9"...

Fri, 04/26/2013 - 08:44 | 3501811 SheepDog-One
SheepDog-One's picture

Better 'n expected!

Fri, 04/26/2013 - 08:19 | 3501729 B2u
B2u's picture

Don't they say...."The rain in Spain...???"

Fri, 04/26/2013 - 08:24 | 3501743 youngman
youngman's picture

they do not want austerity...but they are going to get it......but someone keeps buying their bonds...go figure?????

Fri, 04/26/2013 - 08:27 | 3501752 negative rates
negative rates's picture

Yea, instead of teaching them, you held um hostage to an unsustainable lost war on drugs.

Fri, 04/26/2013 - 08:25 | 3501749 doomandbloom
doomandbloom's picture

#Winnnig #FORWARD

Fri, 04/26/2013 - 08:51 | 3501767 GetZeeGold
GetZeeGold's picture

 

 

#Dazzling success

Fri, 04/26/2013 - 08:27 | 3501754 NEOSERF
NEOSERF's picture

Now things are getting interesting...that's exactly what this is...a small step in the right direction via a big middle finger towards Berlin....

Fri, 04/26/2013 - 08:38 | 3501789 negative rates
negative rates's picture

Do they have psychiatrists over there?

Fri, 04/26/2013 - 08:44 | 3501806 SheepDog-One
SheepDog-One's picture

Whoa! Ya mean it's all just day to day bullshit?

#FORWARD into the breech, cannon fodder!

Fri, 04/26/2013 - 08:44 | 3501808 Edward Fiatski
Edward Fiatski's picture

"SPAIN SEES UNEMPLOYMENT AT 27.1% IN 2013, 26.7% IN 2014"

Is this a farce?

"...by the Year 2030, we shall reach 10% unemployment. Success!"

Fri, 04/26/2013 - 08:49 | 3501823 overmedicatedun...
overmedicatedundersexed's picture

"Stalingrad & Poorski 500 stock index."  LOL..very nice very nice..lol

Fri, 04/26/2013 - 09:08 | 3501920 Phroneo
Phroneo's picture

Would they have permission to do this? I thought they were supposed to stick to some kind of targets.According to thos forecasts, they will probably reach 100% debt/GDP. Is Germany ok with this? 

Fri, 04/26/2013 - 09:28 | 3502013 SKY85hawk
SKY85hawk's picture

Even Germany's politicians exempted the country from Maastricht requirements!

 -Germany & France ignored their 2003 and subsequent violations of Maastricht treaty requirements on Deficit levels.

Fri, 04/26/2013 - 09:22 | 3501978 CURWAR2012
CURWAR2012's picture

"Stalingrad & Poorski 500 stock index."...I spit up my coffee on that!!!

Fri, 04/26/2013 - 09:34 | 3502043 smacker
smacker's picture

 

A major problem that Spain and other EZ members have with 'austerity' is that it invariably demands substantial cutbacks in State spending on civil servants (increasing productivity of those left), other public service workers and very many state sponsored 'white elephant' projects often running into €billions, many of which do little more than 'big up' the politicians who signed them off and who are rewarded with brown envelopes stuffed full of €€s by the contractors awarded with contracts. Collectively these have all increased the size of the State - a politico's dream. Austerity seeks to downsize government - if not its breadth and depth of power & control - by shifting surplus public sector workers into the private sector where they can do something useful for a living.

But Spain, like all the others, is a socialist country and its culture, economy and work ethos is designed to exist, integrate and operate around ever bigger government. Thus, downsizing government and pushing workers out creates a major unemployment crises because far too many people simply do not know how to stand on their own feet and make a living without sucking at the teat of government one way or the other, either as personal or corporate welfare recipients.

We are seeing the consequence of many years of ever growing government involvement and meddling in the economy and society.

Fri, 04/26/2013 - 10:14 | 3502183 Smegley Wanxalot
Smegley Wanxalot's picture

This is great.

A rotten spanish economy and insanely high youth unemployment will make it even easier to get laid in Spain when I visit - not that it is tough in the best of times.

Fri, 04/26/2013 - 11:00 | 3502375 Edward Fiatski
Edward Fiatski's picture

Watch out for hornyunemployed Spanish men.

Fri, 04/26/2013 - 11:34 | 3502522 writingsonthewall
writingsonthewall's picture

Terrible - so you have to wait for a once in a generation depression to get laid?

Fri, 04/26/2013 - 14:00 | 3503211 smacker
smacker's picture

 

How do you get Spanish women to shut-up when you lay them?

.

.

.

Erm, maybe you shouldn't answer that.....

Fri, 04/26/2013 - 11:26 | 3502495 writingsonthewall
writingsonthewall's picture

This move is known as 'being honest with yourself' - after years of lying the Spanish Government has realised that despite the encouragment from the baying austerity mob - that blood letting (austerity) is probably not going to rid you of the demon debt - infact it's going to kill you.

If you don't like it - then tough - you shouldn't have bought debt from a country which has defaulted several times in the past.

The true hypocriscy is the same people who insisted the banks shouldhave been allowed to fail (which I agree to a point) - are the same people now demanding that countires undergo pointless austerity - rather than leaving their sovereign debt investment in the toilet.

This is how fascism grows - see how the minority banks lobbied for protection - and now the bond holders do the same. Each minority trying to protect itself no matter what the cost to the majority.

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