The centre-right People’s Party, led by Manuel Rajoy, has now formed a government after two inconclusive general elections had left him in charge of a caretaker administration.

Rajoy was eventually able to take office due to parliamentary abstentions by opposition socialists.

Government spokesperson Íñigo Méndez de Vigo, described the new administration as “one of continuity regarding that which must be continued – which is economic recovery, job creation, reforms and budget stability”.

A report to the meeting on Spain’s economy concluded that the government should be able to meet its target of a deficit of 4.6% of GDP, as set by the European Union.

It warned that the country’s economic credibility depended to a large extent on meeting this.

Spain’s Treasury reported to ministers that revenue from personal income tax had grown by 6%, and VAT payments by 4.4%.