Fernando González Urbaneja | The approval of the 2021 budget was one of the first successes of the coalition government headed by Pedro Sánchez. It was like a resistance test for the alliance that made the government possible, with partners in the government (the United-Power conglomerate) and occasional partners in Parliament (regionalists, nationalists and various pro-independence supporters). The budget was approved after previous failed experiences and the government felt ratified…
spanish budget 2021
The Council of Ministers today approved the draft General State Budget for 2021, following the agreement reached last night by the coalition government. The proposal will be focused on mitigating the effects of the pandemic’s effects with the largest public expenditure in history. This amounts to 239.765 billion euros – an increase of 10% – including an advance of 27 billion of European funds. Now the most difficult part remains: obtaining parliamentary support for the Budget.
Although Spain’s budgetary credibility in Europe, built up over the past decades, is in tatters- none of the deficit or debt commitments of recent years have been met- the country needs a budget which can be presented in Brussels, in order to obtain the green light for European financial flows. These are essential. Therefore, Pedro Sánchez’ s government aspires to obtain a minimum political agreement for the approval of the 2021 Budget, without which it could not survive.
Spain and Italy have been two of the leading countries in the European Recovery Fund race. Our country will receive 140 billion euros, of which 72.7 billion will be given in direct aid and the rest in loans. This is a figure equivalent to 11.3% of Spanish GDP in 2019. It is a balm for Spain’s public accounts that will be able to sustain the recovery with greater guarantees. The European agreement for the reconstruction fund will be decisive for presenting the 2021 General State Budget as soon as possible. It should be remembered that the current government continues to manage public accounts under the previous government’s budget. This is technically possible, but lacks political sense.