Who is the real culprit in the deficit debate? At the start of March German Chancellor, Angela Merkel led 25 of the 27 members of the bloc in signing a new agreement. Fiscal compact, balancing a country's budget became official. Spain's Mariano Rajoy, flanked by Greece's prime minister showed no emotion at the official ceremony. All seemed in order as the leaders lined up for the traditional family photo, until shortly afterwards Rajoy announced Spain would reduce its deficit to 5.8% of GDP, and not to the 4.4% as had been agreed. Rajoy won an absolute majority in November's parliamentary elections. On taking up office the Spanish prime minister then announced that the state of the economy was even worse than imagined. That resulted in tougher austerity measures and on Sunday the unions led a demonstration against the cuts ahead of a planned general strike on March 29. Bernardo de Miguel who is correspondent with the Spanish business newspaper, "Cinco Días" - Five Days - believes there is no problem with the deficit in Spain or in the eurozone. He says it is, "a problem" only in Berlin, a country he believes obsessed with the deficit. More about: Eurogroup, Public deficit, Spain, Spanish debt, Spanish economy