News Daily Spot: Spanish public debt level to 100.5% of GDP, the highest in 20 years

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Spanish public debt level to 100.5% of GDP, the highest in 20 years

The Spanish government debt climbed to 100.5% of GDP in the first quarter of 2016, a record in 20 years, said Wednesday the Bank of Spain, at a time when Madrid is exposed to sanctions from Brussels for their excessive deficits.

Public debt reached 1.095 billion euros, according to the central bank.

At the end of 2015, public debt had stood at 99.2% of GDP. Already in the first quarter of this year the debt had surpassed the symbolic barrier of 100% of GDP, to be located at 100.2% of GDP.

This figure is known in the midst of the election campaign to new legislative elections on June 26, which has been among the topics of discussion the level of debt, deficit and high unemployment.

The outgoing conservative government of Mariano Rajoy has promised to reduce public debt to 99.1% of GDP and the public deficit to 3.6% by the end of 2016.

Finishing so, Spain would stand a year above the ceiling set by Brussels for the deficit of 3%.

Not to interfere in the campaign, the European Commission decided to postpone until July a decision on a possible sanction to Spain for its excessive public deficit, which climbed to 5% in 2015 in the fourth largest economy in the euro zone.

The Spaniards return to the polls to six months of legislative December. These elections resulted in a fragmented parliament, which did not reach agreement to form a coalition government, forcing new elections.

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