Tag: Public Debt

From “whatever the cost” to the recovery of accounts
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From “whatever the cost” to the recovery of accounts

After the storm, the good weather. Since the lifting of the health restriction measures, the French economy is regaining color. So much so that the Banque de France has just raised its growth forecast, now betting on a surge in GDP this year of 5.75%. This recovered health obviously revives the debates around the end of the "Whatever the cost". It also revives reflections on the next step, the one that should allow a return to normalcy with the key issue of controlling public debt propelled to a record level.Remove the crutchesFor several weeks now, the tone has changed at Bercy. While ministers persist in proclaiming their willingness to help businesses as much as necessary, they also insist on the need to continue to gradually withdraw the crutches that have support...
AIReF warns of "high level of debt" and of the "great vulnerability" of public accounts
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AIReF warns of "high level of debt" and of the "great vulnerability" of public accounts

The Independent Authority for Fiscal Responsibility (AIReF) has warned this Thursday of high level of debt that places public finances in a position of "great vulnerability". However, they have sent an optimistic message, believing that public debt may have peaked, so it would begin to decline as restrictions due to the pandemic continue to be lifted and recovery progresses. They are the conclusions set out in the last Debt Observatory, in which they analyze the recent evolution of public debt, as well as an estimate of future evolution, examining the risks and challenges for the sustainability of public finances.Thus, AIReF emphasizes that the pandemic triggered an economic crisi...
The Covid accelerates the end of austerity: the bet to relax the debt and deficit limits gains weight in the EU
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The Covid accelerates the end of austerity: the bet to relax the debt and deficit limits gains weight in the EU

The European Union has had the same fiscal rules for 24 years. In 1997 the member states agreed to the so-called Stability and Growth Pact, by which the public debt could not exceed 60% of GDP while the public deficit could not exceed 3%. Since then, the Union has gone through two crises: the first, the Great Recession of 2008, and now the coronavirus pandemic that has once again left the community economy battered and has put it on the table the possibility of changing the rules and putting an end to a framework typical of times in which austerity prevailed.Right now fiscal rules are suspended until 2022 and Spain is one of the countries that is pushing the most to reform before they start o...
Brussels improves Spain’s growth to 5.9% thanks to the impact of European funds
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Brussels improves Spain’s growth to 5.9% thanks to the impact of European funds

Brussels improves its growth forecasts for Spain thanks to the progress of the vaccination campaign against Covid-19 and especially to positive impact of European funds Next Generation, which will be especially noticeable in 2022. Despite this acceleration, our country will be - along with Portugal and Italy - one of the last to recover its pre-crisis level due to the initial strong blow of the pandemic. It will not do so until the end of 2022, one year later than the EU average. The European Commission foresees that the Spanish economy grows 5.9% this year, three tenths more than what it had calculated in its previous forecasts for February. But the upward revision affects in particular the year 2022, in which the Community Executive increases the planned expansion from ...
Spain is the only major economy in Europe that does not detail a fiscal plan to contain public debt
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Spain is the only major economy in Europe that does not detail a fiscal plan to contain public debt

The Minister of Finance, Mara Jess Montero.EFEThe Government of Pedro Sánchez is the only one among the great economic powers of Europe that does not detail, in the stability program, what fiscal strategy to follow in order to reach a sufficient deficit level with which to redirect the debt towards. "The other countries only incorporate it to a greater or lesser level and measures are taken", explains the Independent Authority for Fiscal Responsibility (AIReF). But Spain does not. The body headed by Cristina Herreno has presented its 'Report on the Update of the Stability Program 2021-2024' on Tuesday, and in that document it includes a table that is very revealing. To begin with, because it shows that Spain is the only country that has not announced any specific measure in this area, wh...
An economy that continues to chain bad news
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An economy that continues to chain bad news

Recovery is delayed The week has been particularly disastrous for the Spanish economy, with worrying data on GDP, deficit, debt, employment and even the CPI and the price of electricity The Minister of Finance, this Friday, in the presentation of the deficit path.The economy contracted again during the first quarter of the year, the government raised its deficit forecast even further, and public debt will remain at alarming levels for the next four years. Many, in all probability. Spain has accumulated this week, and especially this Friday, numerous and very relevant negative economic news, which show that the crisis derived from the coronavirus not only continues to impact strongly but will continue to do so for a long time.GDP FALLS AGAINFollowing a chronological order, the first thi...
The burden that future generations will pay: public debt increased 452 million a day in the year of the pandemic
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The burden that future generations will pay: public debt increased 452 million a day in the year of the pandemic

Liabilities soared by just over 165,000 million in the first 12 months of the crisis unleashed by the coronavirus, according to data from the Bank of SpainThe Vice President of Economic Affairs, Nadia Calvio, yesterday in Congress.Juan Carlos Hidalgo placeholder imageEFEFrom the 1.20 trillion in which it was just before the outbreak of the pandemic - or, rather, just before the Government began to take action - to 1.36 trillion. In total, an increase of slightly more than 165,000 million and a rebound of 452 million euros per day. These are the dizzying figures that the public debt shows, whose data updated to February has been published this Thursday by the Bank of Spain and in which the notable increase registered by the liabilities during the year of the pandemic and that, in addition...