fiscal consolidation


Brussels calls on Spain to make an “additional effort” to develop a credible fiscal strategy

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…


Brussels Proposes To Keep Fiscal Rules Suspended For Another Year Because Of The War

On Wednesday 18 May, European Commission commissioners finally agreed to submit a proposal to European countries on Monday 23 May to suspend public debt and deficit targets for 2023, for the fourth consecutive year. The measure, which will still have to be validated by the member states, gives countries such as Spain an additional grace period to get their public accounts back on track after the Covid bill. The European…

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The IMF Calls In Brussels For Fiscal Rules In Europe To Be Applied According To The Debt Of Each Country

The International Monetary Fund (IMF) believes that the debate on whether or not to return to fiscal rules in the European Union is more timely than ever. Now the continent is going through a “second economic crisis” due to the war in Ukraine, after a first one due to the pandemic from which we have not yet recovered. Gita Gopinath, deputy director general of the IMF, said the new fiscal…

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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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Does Greece need a third programme?

By Jens Bastian via MacroPolis | During his visit to Berlin this week, Prime Minister Antonis Samaras repeatedly emphasised that Greece does not require a third financial support programme. In his conversation with Chancellor Angela Merkel he highlighted that the Greek sovereign was able to successfully return to international bond markets in April after a three-year forced hiatus.

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Boosting growth is the only way of achieving fiscal consolidation

MADRID | By Luis Alcaide | In an op-ed at Wall Street Journal on Thursday, New EU Vice Commissioner Jyrki Katainen pledged for stimulating growth in the eurozone by keeping the proper fiscal consolidation. But his comment could be put in a different way: stimulating growth by all means as the only way of achieving fiscal consolidation. Stimulating growth means that deflation, a price level increase inferior to 2% (the Stability Pact target) is a more pressing requirement than meeting the 3% public deficit in the short term. 


Swedens loss of faith

Sweden’s loss of ‘faith’

SAO PAOLO | By Marcus Nunes | According to Per Bylund, “during the recent financial crisis, Sweden has emerged as one of very few financially sound economies.” However, now the country successfully rolled back its unsustainable but world-renowned welfare state.