Spanish public debt

Budget 23: Expansive And Electoral (What The Government Knows How To Do)

Fernando González Urbaneja | No surprise, the Budgets 2023 presented give everything the government has to offer; coherent with what has been presented so far in the legislature; no more (and no less). Expansionary and electoral budgets. As always, and even more so, since the aim is to win the elections themselves. And this is done with optimism, with generous distribution of benefits, without concern for deficit and debt. No…

An unconvincing 2019 Spanish budget

An Unconvincing 2019 Spanish Budget

J.P. Marín- Arrese | The Spanish government has released its main budgetary lines, in a rather unusual and surprising way. For, it holds responsible the former PP Cabinet for most of the expenses plus a sizeable deviation from the deficit goal in 2018. The least one can say is that such a baffling message underlines its inability to curb the imbalance while enjoying power for the second half of this year.

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Spain’s Public Administrations Will Be Financially Stretched without a budget

Spain’s socialist party PSOE doesn’t seem to be too worried about the fact the country may not have a 2017 Budget. But it’s increasingly clear to all of us that the lack of a budget will not be without a cost. On the contrary, it will greatly affect a large part of Spanish society. Almost all economists believe that the impossibility of drawing up new accounts, and updating certain items, could mean that the amount spent on civil servants’ salaries will be maintained.

Spanish public debt

Fiscal rectitude lags behind in Spain

Spain’s public deficit ranks as the highest one in the eurozone, with the exception of Cyprus. Up to now, a set of exceptional circumstances has allowed for a stance of benign neglect at visible cost. But dangers loom ahead if fiscal rectitude is not firmly enforced.

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No `serious` fault found, France, Italy 2015 budgets pass EU review

MADRID | The Corner | The European Commission said on Tuesday it had found no serious fault with eurozone member states’ 2015 budget plans, clearing France and Italy after they made last-minute changes to meet EU demands. The budget review covered all 18 eurozone countries, with the focus on struggling France and Italy after Brussels told them that their original plans fell well short of what was required to meet European Union norms.

Portugal Draft 2014 Budget

Portugal: Potential fiscal slippage this year likely to set the bar higher for next

LONDON | By BARCLAYS | The Portuguese government presented yesterday the draft Budget Law for 2014. Fiscal measures to be deployed amount to EUR3.9bn (2.4% of GDP), about 0.4% of GDP above the EUR3.3bn announced in May when the cabinet approved additional austerity measures to meet revised fiscal targets for this year and next (EUR1.4bn in 2013 and EUR3.3bn in 2014).

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Barclays Capital: Spain’s debt dynamics sustainable

MADRID | Barclays Capital made a realistic yet not Armageddon-like exercise in which the Spanish banking sector would need a recapitalisation equivalent to 6 percent of the country’s GDP, plus an additional 5.4 percent of GDP as an extra-safety calculation. Its analysts threw in 0.9 percent of GDP in Greek liabilities, and 3.5 percent of GDP in administrations’ accumulated debt payments. The scenario considered included yields on 10-year bonds of…

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In defence of Spain’s 2012 budget

MADRID | Elvira Rodríguez, who chairs the Spanish parliamentary committee on Economy and Competitiveness, and is a former State secretary for Budget and Expenditure, had two words to say about the government’s public budget: rigour and responsibility. Rodríguez published Monday an op-ed in the business daily Cinco Días, probably in advance of the heaviest wave of criticism that the country’s budget plans have had to endure during the last decade. She…


Spain’s Budget less daunting than expected

MADRID | The Spanish government claims the 2012 budget to be the toughest ever. On face value it embodies a 2.5% GDP deficit reduction, an awesome effort by any standard. Slashing expenditure amounts to two thirds of the squeeze, the rest falling on tax adjustments. Will budgetary crunch depress activity or axe main spending policies? A closer look dispels any anxiety over these daunting effects. Many of the cuts come…


Trick or treat: the Spanish budget

By Luis Arroyo, in Madrid | Spain’s 2012 budget brings a contraction in public spending of €18 billion and an increase in taxes of €9 billion, both items totaling €27 billion, which would put central government deficit at 3.5%. To reach the pursued 5.3%, the rest of the effort corresponds to the autonomous regional governments, not exactly the most successful part of the public administration in matters regarding austerity. In addition,…