General Government Borrowing Hit Another Record High In March: 1.45 Trillion Euros (117.7% Of GDP)

Public indebtedness continues to break records. In March, debt registered a new all-time high of over 1.45 trillion euros after increasing by 12.381 billion euros compared to February, according to the statistical advance published yesterday by the Bank of Spain. It is true that the debt-to-GDP ratio stood at 117.7%, far from the 125% it exceeded in March last year. However, that was exclusively due to the economic rebound, which…

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The Airef Calls For “Realism” In The Government’s Forecasts And A Plan For Fiscal Consolidation

The AIREF (Independent Authority for Fiscal Responsibility) warns that the Government’s forecasts are unrealistic and the 2022-2025 Stability Programme “should be more explicit”. During the organisation’s press conference, attended by its president Cristina Herrero and those in charge of budgetary and economic analysis, they warned that the Plan sent to the European Commission on 29 April has “serious shortcomings”. The reason is that despite the fundamental role that the Government…

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Finance Ministry Optimistic… With The Highest Public Deficit In Europe (6.9%)

Fernando González Urbaneja | The Finance Minister, always cheerful and confident, has presented the budget execution for 2021 with her usual optimism. The deficit stands at 6.9%, three points less than the previous year, a point and a half less than the government’s forecast. The minister gives herself a good mark, a top A, and the media receive the data with not a little optimism, 28% less than the previous…

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The Government Expects A Deficit Of 8.4% This Year

The Council of Ministers on Tuesday approved the non-financial spending limit, the ‘spending ceiling’, for the State Budget for 2022. This remains at 196.142 billion euros, in line with the figure recorded a year earlier, including extraordinary transfers to the Social Security (of 18.396 billion), to the autonomous communities, and part of the European funds. The government has also maintained its public deficit forecast of 8.4% of GDP for this…

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Perseverare Diabolicum

Last week the Council decided that Spain and Portugal’s recent efforts to reduce deficit were not enough. This lead to the two countries being fined, the first time this happens since the inception of the euro.


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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Investors appetite for Spanish economy: will it last?

MADRID | By David Fernández | Foreign investors are showing a sudden interest in assets made in Spain due to, among others, central bank’s last data, Europe’s decision to delay the deficit commitment by two years and international factors such as second-round monetary helicopter launched by the Bank of Japan. Will this trend vanish?

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Spanish government meets the regions to set specific deficit targets

By Tania Suárez, in Madrid | On Tuesday afternoon, July 31, the Council for Fiscal and Financial Policy (CPFF by its Spanish initials) will meet the central government in order to establish the deficit target and debt levels of each region in Spain for 2013. It is expected that the regions will adapt themselves to the general targets, which marked a mutual deficit of 0.7% for 2013, 0.1% for 2014…