In order to meet the deficit objective, Spain needs to freeze pension payments made to retired workers. Fedea representatives have clearly stated that not freezing pensions would be a "suicidal" decision.
In the first half of the year, the budget imbalance is half a point higher than in 2011, and there are still six months left in the year. During this time frame, the deficit could grow further.
For this reason it is thought that 7 billion euros in additional cutbacks are needed in order to meet the deficit goal. We have to undertake measures that are hard but necessary. It doesn't matter whether Germany cares whether we meet it or not, because not meeting it means that we will not regain credibility and not gain access to the capital that we need to get out of the crisis.
