11/24/2021 at 1:24 PM CET
The European Commission insisted on Wednesday that Spain must maintain a “prudent” fiscal policy due to its high levels of deficit and public debt in order to guarantee the sustainability of public finances in the medium term.
It is the message from Brussels to the Government tafter having analyzed the Budget for 2022 that he sent to the community capital in mid-October. With the fiscal rules still suspended, the community authorities do not approve or suspend the budget drafts of the countries, as in previous years, but they are limited to analyzing the accounts of each one of them and, if necessary, to point out the deficiencies.
“Given the level of Spain’s public debt and the important challenges for sustainability in the medium term before the COVID-19 pandemic, at adopt supportive budgetary measures, it is important to maintain a prudent fiscal policy to guarantee the sustainability of public finances in the medium term, “the text states.
About the Spanish Budget, Brussels values that Spain follows its recommendation, as part of the most indebted countries of the bloc, to promote the recovery with aid from the European anti-crisis fund and, to a lesser extent, through public investment.
In fact, Spain and Slovakia will be the only countries in the EU who will have a restrictive fiscal policy next year -that is, prioritizing the containment of public spending-, while the fiscal position of the rest of the Member States will be expansive.
In addition, the Community Executive includes Spain once again within the group of twelve countries with macroeconomic imbalances, among which, in addition to the deficit and public debt, its high unemployment, the foreign position, the debt of the business sector and the risk accumulation of toxic assets in the banking sector.