In Spain today all eyes will be on the voting on the no-confidence motion which we expect will be successful. Unless current Prime Minister Mariano Rajoy decides to resign ahead of the vote. So everything points to PSOE leader, Pedro Sánchez, becoming the new Prime Minister. It looks like he will not propose new elections immediately, which we believe will prolong the political instability in the country.
Spain budget 2018
The 2018 budgets predict very optimistic increases in revenues (+6% in some taxes). But there is no real risk of non-compliance if spending remains tightly controlled.
It’s almost certain that the Catalan crisis will prevent the Spanish budget from being approved, which will be a blow to political stability and the duration of the current legislature.
Many argue that Spain lacks a proper government, with the one in office proving unable to secure parliamentary backing for the 2018 general budget.
The European Commission determined on Wednesday that the draft of Spain’s budget for 2018 sent by the Spanish government “complies in general terms” with the criteria established in the Stability and Growth Pact. Despite the fact the public deficit will exceed the target agreed on for next year.