Spain and the European Commission (CE) admitted to the Eurogroup “differences” on the perception of the Spanish effectiveness of measures to reach the next year deficit target , as well as forecasts growth .
Ministers of Finance and Economy of the eurozone , the Eurogroup endorsed the analysis of the EC on 16 appropriations bills for 2015, which seven states -Spain, Belgium, France, Italy, Malta, Austria and Portugal are at risk of failing commitments of fiscal consolidation.
In this sense, asked France “additional measures” to redirect their diversion and warned that Italy and Belgium have to apply “effective measures” for that Finally, without addressing whether they need new efforts or not.
The EC gave these three countries until March to reconduzcan their budgets reforms and adjustments.
“They would be necessary effective measures to allow an improvement in the nominal deficit, to comply with the rules of the Stability and Growth Pact, “said Eurogroup in its statement on Spain, after the EC opine that this country will default on four tenths the objective of 4.2%.
Spain and the EC in charge of enforcing fiscal discipline rules contained in the Stability and Growth Pact limits on deficits and debt, acknowledged their differences on the effectiveness of the measures envisaged by the Spanish Government and the expected growth.
“The Government of the principle that the current measures are enough”, stated by Minister of Economy of Spain, Luis de Guindos at the end of the first meeting of the forum which brings together the finance ministers of the euro area, the Eurogroup.
“We have a dispute with the European Commission. We are more optimistic about economic growth, “added the minister, who considered that this expansion will help reduce the deficit.
Thus, he added,” the Spanish Government is convinced that the objective 4.2% (Deficit) goes perfectly meet next year. “
The Commission expects the Spanish GDP advance by 1.7% next year, three tenths less than forecast Spanish government officials, although the Prime Minister, Mariano Rajoy, even predicted that economic growth could exceed 2%.
In your opinion Spain budget plans for 2015 published on 28 November, the Commission considered that there is “risk” that the country fails to meet its deficit targets (4.2% in 2015 and 2.8% in 2016) and considered that its growth forecasts are too “benign”.
The European Commissioner for Economic and Financial Affairs, Pierre Moscovici, confirmed at a press conference the “differences of opinion” it has with Spain, and argued that the Commission is “very prudent and cautious” when assess the impact of reforms and growth projections.
“Therefore, we will continue discussions (with Spain) to achieve an agreement,” he said.
If Spain fails to convince the Commission, it may ask the Spanish authorities to take “additional measures” according to Eurogroup chairman Jeroen Dijsselbloem.
In his statement, the Eurogroup welcomes the commitment of Spain implement “necessary measures” to ensure compliance with fiscal discipline and recalls the “ambitious” and “comprehensive” reform agenda over the last year.
“The assumption is, as we have put in our statement, the effectiveness “of the proposed measures, Dijsselbloem said, who stressed the” commitment “of Spain with the fulfillment of the objectives of deficit reduction.
On the other hand, members of the single currency urged France to take “additional measures” after finding that the efforts expected to do in 2015 are far from those required, since structurally equivalent to 0.3% of GDP instead of 0.8% necessary to comply with discipline European tax.
France, Malta and Austria are the only countries to which the Eighteen openly call new settings, as in the other cases in which the capital is urged to act speaks of “effective measures”, without specifying if the previews are sufficient or not.
In the case of Italy, the Eighteen find that the country poses structural adjustment equivalent to 0.1% of GDP instead 0.5% required.
“Under these premises, effective measures would be needed to allow better structural effort,” says the Eurogroup in his statement.
The Eighteen repeat the same words for Belgium, which raises make some adjustments equivalent to 0.4% of GDP rather than 0.6% of its GDP needed.
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