07/12/2014 – 18:12
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Brussels, December 7 (EFE) .- The Eurogroup asked tomorrow to Spain and other euro-zone countries to take the necessary measures to prevent evasion of the rules of fiscal consolidation in its budget for 2015 projects and discuss an extension of the bailout for Greece beyond December 31.
The Ministers of Economy and Finance of the eurozone will support the analysis Monday European Commission (EC) on 2015 budgets 16 countries sharing the euro (all except Cyprus and Greece), where seven states are at risk of default of the Stability and Growth Pact (SGP): Spain, Belgium, France, Italy, Malta, Austria and Portugal.
The EC is critical to the achievement of the deficit targets, especially for 2015 but also for 2016 (2.8% required, but the Commission envisages 3.9% for Spain).
For next year, the EC estimates that Spain will have a deficit of 4.6% of GDP, four tenths higher than required, primarily by a vision more cautious about spending restraint, especially regional and local level and a different assessment of the impact of tax reform.
In addition, the budgetary targets depend risks related to contingent liabilities in the energy sector, says the EC.
On the tax reform, the Commission believes that “lacks the breadth and ambition that could have”, focusing on cuts in income taxes physical and corporate persons and that is partly a “missed opportunity” to address weaknesses in the tax system and sustainably reducing taxation levied on the job.
The EC has recommended shifting the tax burden towards indirect taxes on consumption or environmental damage, or recurrent taxes on immovable property.
The reform, not being neutral in terms of revenue, “could make it harder sanitation budget, “says the EC, which further states that measures to reduce the tax wedge (the difference net salary and gross) and social contributions for new contracts could have a positive effect on employment and that this could have been higher .
Spain could have focused more on reducing the cost of labor by reducing social contributions, consider the EC.
Another criticism that Spain has not applied none of the preventive measures provided for in the Act stability, despite the “visible deterioration of public finances of autonomy” to ensure that the autonomous communities meet the deficit.
However, concern focuses mainly in France and Italy, plus Belgium, to which eurozone partners demand more reforms and adjustments to straighten your accounts.
The Commission has chosen to grant until next March to reconduzcan their budgets, having received of the three governments reform commitments at the highest political level.
On the other hand, the ministers will have to discuss an extension of the bailout for Greece beyond December 31, when it expires the European part of the program, given the impossibility of Athens and the troika (EC, the Central European International Bank (ECB) and Monetary Fund (IMF) to close the current fifth revision.
One option is to extend the rescue until the end of January and another until the end of June, according to the president of the Euro Working Group, Thomas Wieser, the Greek newspaper Real News said.
The Greek Parliament votes today budgets for 2015 without have managed to unlock the negotiations with the troika, which considers that in 2015 Greece will have a financing gap of between 2,600 and 3,600 million euros, which Athens denied.
An extension would allow parties to agree and prevent Greece lost the final disbursement of 1,800 million euros.
Both the extension and the line of credit with reinforced conditions which will then have to be requested by the Greek government and in the first case should do and because the parliaments of the eurozone, which must give its approval, begin their recess around December 19.
So the Eurogroup has to send the latest all documentation 14 or 15 December.
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