The European Union placed austerity measures on Spain to increase confidence not only
in the Spanish economy but also in the future of the EU as a whole. Spain has been
diligent in decreasing its deficit to sustainable levels, and is seeing the benefits in
international markets. The spending cuts and tax increases implemented by the Spanish
government helped Spain decrease its budget deficit from 4.2% of GDP in 2012 to 3.9%
in 2013. The European Commission has granted Spain a two-year extension, until 2016,
to reduce its budget deficit to 3%, which it expects to accomplish