Spain miss budget deficit target as EU Leaders agree on treaty

Spanish Prime Minister Mariano Rajoy has said his country will miss its budget deficit target for this year, just as EU leaders agree a new treaty to enforce budget discipline.

Spain's deficit would be 5.8% of total economic output in 2012, higher than its agreed target of 4.4%.

Spain announces that its deficit in 2011 was 8.5% of GDP, well above the target of 6%. Spanish officials have said that the government won't meet this year's target of 4.4% of GDP and Holland also said it would miss its budget target for this year, with a deficit of 4.5%.

EU leaders met on Friday to sign a treaty known as the "fiscal compact" which aims to prevent other Eurozone states running up huge debts like those which sparked the Greek, Irish and Portuguese bailouts.

The UK (PMI) for construction rose to 54.3, up from 51.4 in January. Analysts had expected a slight fall, what does this mean; a reading above 50 implies that the sector is growing. Strength in this industry could help the UK avoid a double-dip recession, after the economy shrank during the last three months of 2011.

In Germany Retail sales did fall unexpectedly in January by 1.6% compared with the previous month, the biggest drop since May 2011

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