CoM | Government debt according to the Excessive Deficit Protocol rose to €1.52 trillion in February, which represents a growth rate of 5.4% in year-on-year terms and an increase of 2% compared with the previous month, according to data released by the Bank of Spain. Specifically, public debt has added €30,208 million in one month and €78,436 million in the last year. The balance of government debt rose to €1.349…
CdM | La Fundacion de Estudios Economía Aplicada (Fedea) calculates that if all the Public Administrations make an effort on fiscal consolidation which reduces the structural deficit to the tune of 0.25% of annual GDP, this would leave the indebtedness level at 110% of GDP in 2032. For the autonomous communities subsector, and with a similar structural adjustment, Fedea flags that the policy objective of 13% of GDP for the…
The share of foreign investors in Kingdom of Spain government securities has decreased from the level of 48.79% at the end of 2019 to 41.04%, which is 7.75 points higher. In December 2019, non-resident investors held a portfolio of Spanish securities for an overall amount of 480.094 billion euros, which represented 48.79% of the total debt issued by the State. They now stand at 499.376 billion euros. The strong effort…
Debt set a new all-time high in September, at 1.504 trillion euros, which represents an increase in relative terms of 0.8% compared to the previous month, reaching 116% of GDP. By administrations, government debt rose in September to 1,329,016 billion euros, 6.8% more than a year ago and 1.15% higher than in the previous quarter, marking an all-time high. For their part, the debt of the autonomous communities fell by…
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…
Fernando González Urbaneja | In recent years the European Central Bank, in addition to ensuring price stability (an objective it has achieved), has tried to sustain and stimulate the euro economies by supplying all the credit necessary and at the lowest price imaginable, practically zero. States have benefited from this policy by issuing debt at no cost, even with a few tenths of a yield. The ECB has done its…
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…
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…
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…
To govern is to spend. Although the end result, as Zapatero’s experience shows, leads to losing elections in a spectacular fashion, the temptation is irresistible. Zapatero handed out cheques with debt at 60% of GDP. Sánchez is doing it with levels of 140%. May Saint Rita look after his eyesight!