Spain's deficit targets at risk amid political uncertainty

Madrid

AMID the uncertainty over Spain's political future after Sunday's inconclusive election result, one thing is clear: The country's budget-deficit targets are at risk.

Three of the four biggest parties in the new parliament promised voters during the campaign they'd persuade the European Commission to ease Spain's budget limits. The fourth, Prime Minister Mariano Rajoy's People's Party, insists it will meet the goals, though it's missed them every year since taking office in 2011 and the Commission says its 2016 budget will overshoot again by more than eight billion euros (S$12.3 billion).

Despite Mr Rajoy's budget struggles, Spain has been cheered by European leaders including Chancellor Angela Merkel for taking the eco…