| Research guide to European Monetary Union The government's top priority is early membership of the Emu in 1999. A tighter fiscal policy stance, measures to increase competition in goods and services markets, further reforms of the rigid labour market and a general move towards a more private corporate instead of a public corporate economy via the sale of public companies are all intended to make the Spanish economy fit for Emu. As the main political parties share the government's Emu ambitions (with the exception of the Communists) politics should not interfere negatively in the preparations for Emu. Fiscal policySpain's fiscal position has improved considerably since 1993 when economic recession hit public accounts and the budget deficit widened to 7.5% of GDP. Last year the deficit target of 4.4% of GDP was met for the first time in several years, increasing the government's credibility that it may also hit this year's objective of 3% of GDP. The conditions to achieve this seem to be in place, ie stronger economic growth and lower interest rates. While the biggest European economies are struggling to achieve their budget targets in the face of stagnant economic growth, the outlook for the Spanish public accounts is hence more positive. |