Spanish Finance Minister Elena Salgado slashed growth projections for 2011 to 0.8% from the prior forecast of 1.3%, yet very close to the 0.7% announced by the European Commission last week.

In addition, she said it is too early to know whether the regional governments would be able to meet their budget deficit target since the region's third quarter data is not available yet, which raises suspicions regarding the ability of the euro area's fourth-largest economy to meet the budget deficit target of 6% of GDP.