It’s almost certain that the Catalan crisis will prevent the Spanish budget from being approved, which will be a blow to political stability and the duration of the current legislature.
Spain public debt
The European Commission has published its evaluation of the progress made by different countries towards their economic and social priorities. The report highlights that the Spanish economy is growing at a good pace and is gradually correcting its weaknesses. But there continue to be huge imbalances, like still high unemployment and the high levels of both public and private debt.
There are some items of Spanish public debt which are eliminated from Bank of Spain’s accounts, reducing the total figure. In other words, 450 billion euros ignored. Basically, what is being removed is public companies’ debt, the debt issued by a public institution in the hands of another public institution, as well as other adjustments, which really should not be discounted.
Spain’s public debt stood at 1.070 trillion euros in the fourth quarter, 7.562 billion euros more than in the previous one, according to Bank of Spain data. (datos del Banco de España).
Spain’s public debt stood at 1.062.472 trillion euros at the end of September, representing 99.4% of GDP, and compared with the government’s full-year 2015 target of 98.7%. But is this debt burden really so heavy, when the average cost of debt stood at 0.87% at the end of October, compared with 1.52% in December 2014?
The Corner | July 21, 2015 | Spain’s total public administration debt stood at €1.040 trillion at end-May, up €7.890 billion from a month earlier and representing approximately 97.4% of gross domestic product (GDP), according to the Bank of Spain. The government expects public debt to reach 98.9% of GDP in 2015.