Stability Program

Spain, Nadia Calviño

Spain | Unpleasant Arithmetic

Miguel Cardoso (BBVA Research) | The financial burden is currently approximately 2% of GDP. This means that, with a debt level of 120% of GDP, the government is paying an implied interest rate of 1.7%: a historic low. If the aim is to stabilize public debt at near-current levels, and assuming that both the primary structural deficit and economic growth remain constant, the interest rate would need to remain at approximately 1%. Although this is the current situation, it is temporary.