Spain's Prime Minister Mariano Rajoy said meeting the country's 6.3 percent deficit target for 2012 would be difficult and he did not rule out seeking a bailout, in an interview published in La Razon newspaper on Sunday.

"It is very complicated to reduce the deficit by 2.6 percentage points in the context of a recession, with so many revenue problems and with such high financing costs," Rajoy said.

The ruling People's Party, which went back on an electoral pledge to link pensions to inflation last week, is on track to meet the European Union-agreed deficit target of 6.3 percent of Gross Domestic Product. But analysts say that local finances and social security costs could derail the government's efforts. One in four of the work force is jobless in Spain, which is suffering its second recession in three years.

Copyright Reuters, 2012