public debt


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…

budget2021 amendments

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…

Just Sanchez

The Public Sector Owes 90 Billion To Its Suppliers, As It Did In 2011

According to the daily Expansión today, the commercial debt of Spanish public administrations with their private suppliers rose to 7.6% of GDP in the third quarter of 2021: “A study by the firm Estudio Económico shows that the commercial debt of public administrations grew by 19.907 billion euros in the third quarter of 2021, 28% with respect to the same period of the previous year. The total figure would stand…

European fiscal stimuli

The ESM Suggests Raising The Public Debt Ceiling In EU Rules From 60% To 100% Of GDP

The European Stability Mechanism (ESM) proposes raising the ceiling on public debt set by EU fiscal discipline rules from 60 to 100 per cent of GDP, and combining it with a rule limiting public spending to ensure fiscal sustainability, as reported by EFE. In a paper published in advance of the review of these rules, economists at the eurozone bailout fund argue that, in the current context, insisting on the…

Public debt doesn't cease

Public Debt: I Can’t Believe We Are Still There

Francesco Saraceno | The crisis is supposedly over, as the European economy started growing again. But this matters little to those who, as soon as things got slightly better, turned to their old obsession: Debt. Bear in mind, not private debt, that seems to have disappeared from the radars. No, what seems to keep policy makers and pundits awake at night is ugly public debt, the source of all troubles (past, present and future).

Leverage loans. The next trigger?

Inflation-Linked Bonds: A Safe-Haven In 2017 ?

Miguel Ángel Tramullas | Investment in public debt has traditionally been one of the most popular fixed income assets with both retail and institutional investors. It’s considered as a safe-haven. But in the last few years, it has lost part of its attraction because of lower interest rates which in some places are now in negative territory. To protect themselves, many countries like the US, Japan, the UK, France, Italy and also Spain have begun to issue inflation-linked bonds.

No Picture

Spanish Public Debt Reaches One Trillion

MADRID | By Fernando G. Urbaneja | Spanish households and businesses were the most indebted at the beginning of the crisis (80% of the total), but now their debt is getting smaller in a systematic and decided way. The same cannot be said of the State, which keeps increasing its public debt with equal zeal (or even more) and has gone from less than 20% at the beginning of the crisis to 36% this week (and still growing).

No Picture

Lights and shades of Rajoy’s two years as Spain’s president

MADRID | By Julia Pastor | Two years, a €100 billion banking bailout, and a comprehensive package of structural reforms later, Spain’s president, Mariano Rajoy, celebrated on Wednesday his 2011 electoral victory. These years’ balance is some sort of bittersweet taste. The country’s external perception has improved, but unemployment and public debt numbers are still a heavy burden.