News

Spain's new finance minister has raised doubts over whether Madrid can deliver its goal of cutting its budget deficit to 4.4 percent of gross domestic product this year, a German newspaper reports.

The Financial Times Deutschland reported Friday that Cristobal Montoro said the target was based on "outdated" growth forecasts by the previous government calling for 2.3 percent growth in 2012. The new government expects Spain to go into recession this quarter.

Montoro said of the 4.4 percent figure that "it is desirable, and it would be good to manage this," according to the report. It said he didn't want to make promises ahead of EU growth forecasts.

Prime Minister Mariano Rajoy's government says the 2011 deficit hit at least 8 percent of GDP. Rajoy meets German Chancellor Angela Merkel in Berlin next Thursday.