The European Commission has asked Spain to make an additional effort to develop a credible fiscal strategy to ensure a significant reduction in its high levels of public debt and structural deficit, as it considers that policy action in this regard has been “limited” in recent years.
“A further consolidation effort is needed for Spain to achieve a sound budgetary position,” says the report published on Monday, which assesses the main macroeconomic vulnerabilities and imbalances in Spain and five other Member States. To ensure a reduction in debt in the medium and long term, the EC warns that it will be necessary to clearly reduce the structural deficit, while it recommends addressing future budgetary pressures on the expenditure side related to the ageing of the population, as well as to health and long-term care.
