Brussels believes the extension of budget poses a risk for Spanish debt reduction

CALVINO MOSCOVICISpain's acting Minister of Economy Nadia Calvino and European Commissioner for Economic and Financial Affairs Pierre Moscovici.

BancaMarch | The European Commission warns that Spain is moving away from the adjustment path and asks for measures that compensate the alignment of pensions with prices.

The extension of the Spanish budget for 2020 worries Brussels. The information sent by Nadia Calviño, Spain’s acting Minister of Economy, poses a particular risk in relation to debt reduction. The concern emerges from the Government’s announcement regarding a series of spending policies that link pensions to inflation.

According to the EC, risks are due to the insufficient reduction of the high level of public debt, as well as to the deviation from the projected adjustment plan. European authorities also regret the limited progress done by the Spanish government since the deficit reduction recommendation was issued in July.