Brussels admits Spain is doing better than predicted

SPAIN/EUROPE (Agencies) In its latest economic forecast, the European Commission admits that Spain is doing better at controlling debt than the rest of the Euro Zone. Public debt in 2011 has been forecast at 69.7% of GDP, four points lower than the commission had predicted a year ago, and 17 points below the rest of the zone, which will rise at 86.5%. The figure for 2012 is forecast at 73% of GDP, well below Greece (156%); Italy (119%); Irreland (114%) and Belgium, (102%), but also below that of  Portugal (92%); France(89%); UK (86,6%) and Germany (75,2%). At the same time, Spain is reducing its deficit at a considerable rate, from 9.6% inn 2008 to 3.8% in 2011, which, says the EU, should accelerate the country's exit from a serious crisis.  Unemployment, however, is expected to remain high -not much if at all below its present 20%- while private and corporate debt will probably rise. These last two items are those that are likely to force the country's financial crisis to drag on, says the report.