Spain may get extra year to meet targets

(CNN) -- Eurozone finance ministers meeting Brussels, Belgium, on Monday will discuss giving Spain extra year to meet its deficit targets.

Spain been told to cut the difference its income and spending to within 5.3% of gross domestic product (GDP) the end of 2012.

But European Union sources tell CNN ministers will probably revise that goal upward 6.3% Monday, in accordance a draft put by the European Commission late Friday.

As of the plan, Spain will be asked cut its headline deficit to 4.5% of GDP for 2013 and 2.8% for 2014, the sources said.

The ministers meeting 10 days after their heads of government agreed to use bloc's temporary bailout funds recapitalize Spain's ailing financial system and to set a joint supervisory body for the area's lenders.

The aim Monday's summit is to figure how to implement those proposals, EU insiders are doubtful the politicians will put numbers the page yet.

One official close Monday's discussions said they likely to include the so-called Troika group of lenders, includes the EU commission, the European Central Bank and the International Monetary Fund.

"There's some technical work that needs to be ," said the official, speaking the condition of anonymity.

"As , they (finance ministers) are aiming more of an agreement in principle than a commitment."

A month , the same eurozone finance ministers agreed to put 100 billion euros ($150 billion) to shore up the capital base of Spain's banks -- money will come initially from the region's nonpermanent European Financial Stability Facility.

Audits commissioned by the Spanish government recently showed the sector likely to need 60 billion to 70 billion euros extra cash to solvent.

But the eurozone seems to be from the point of disbursing money.

'"We may well hear talk of brackets rather final numbers," the official told CNN.

That may be hard the bond markets digest.

Ahead of the gathering, the yield Spain's 10-year bonds surpassed the 7% level that forced Greece, Ireland and Portugal accept bailouts.

When it to Greece, it seems that Brussels is less optimistic whether any headway would be .

"The expected outcome is likely to less concrete," the official said.

"The idea is essentially the new Greek finance minister to outline his government's policy intentions and for Troika to give an initial reading about how things have gone far.''

Finance ministers for the eurozone meet at 5 p.m. local in Brussels on Monday. A broader gathering the full EU finance ministers will take place Tuesday.


Adapted from: CNN, July 9, 2012.