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A new assessment of the action taken by Spain to correct the excessive deficit by 2016 in response to the Council recommendation of 21 June 2013 leads to the following conclusions: — Based on the data notified by Spain in spring 2016 and validated by the Commission (Eurostat) on 21 April 2016, the general government deficit was 5,9 % of GDP in 2014 and 5,1 % of GDP in 2015, above the intermediate targets set by the Council of 5,8 % and 4,2 % of GDP, respectively. The 2014 deficit outcome suffered from a downward revision of nominal GDP carried out at the time of the second EDP notification in October 2015 as well as deficit-increasing financial sector operations worth 0,1 % of GDP. The expansionary fiscal policy in 2015 had a large impact on the fiscal outcome. — Based on the Commission 2016 spring forecast, the change in the structural balance in 2015 is estimated at – 1,0 % of GDP, significantly less than the 0,8 % of GDP recommended by the Council. The cumulative change in the structural balance over the 2013-2015 period amounted to 0,6 % of GDP, thus falling significantly short of the 2,7 % of GDP recommended by the Council. Moreover, when adjusted for the effects of revised potential output growth and revenue windfalls or shortfalls compared to the baseline scenario underpinning the recommendation, the structural effort amounts to – 0,7 % of GDP in 2015 and – 0,2 % of GDP over 2013-2015, which is well below the recommended effort. When measured according to the bottom-up method, the fiscal effort amounts to – 0,5 % of GDP in 2015 and there appears to have been no effort over the 2013-2015 period, against recommended efforts of 1 % and 3 % of GDP, respectively. Consolidation measures, for instance in the context of the reforms of the public administration and the pension system, were insufficient to offset the impact of some expansionary measures implemented in 2015, such as personal and corporate income tax reductions and a partial pay-back of previously foregone Christmas bonuses. — Over 2013-2015, Spanish inflation (as measured by the GDP deflator) was well below that in the baseline macroeconomic scenario underpinning the recommendation (it was even negative in 2014, at – 0,4 %), making the achievement of the fiscal targets more difficult. However, the negative impact of low or even negative inflation on Spain's fiscal outcomes was largely offset by higher-than-expected real GDP growth, also thanks to reforms undertaken in response to the crisis and the successful completion of the financial assistance programme. Despite a less dynamic evolution of the GDP deflator, the level of nominal GDP in 2015 turned out only 1 % lower than foreseen in the baseline scenario, as real GDP expanded much faster over the same period. Furthermore, fast job creation and a tax-rich composition of growth further benefitted the deficit reduction. — Overall, throughout 2014 and 2015, a low interest rate environment and a stronger-than-expected economic recovery, also thanks to reforms undertaken in response to the crisis, the successful completion of the financial assistance programme and favourable labour market developments, helped Spain to reduce its general government deficit. At the same time, the fiscal consolidation process was hampered by a negative inflation surprise relative to the macroeconomic scenario underpinning the Council Recommendation of 21 June 2013. However, windfall gains, especially in 2015, were not used to accelerate the deficit reduction. Instead, fiscal policy was relaxed, in particular through the tax reform and dynamic expenditure growth.