Eurogroup Monday asked to Spain and other euro-zone countries take the necessary measures to avoid default of the rules of fiscal consolidation in its budget for 2015 projects, and discuss an extension of the bailout for Greece beyond December 31.
Ministers of Economy and Finance of the eurozone exceptionally held two meetings: one for analyze national budgets and another that will focus mainly on Greece
<. p> The first will support the analysis of the European Commission (EC) on the 16 estimates for 2015 of countries that share the euro (all except Cyprus and Greece), in which seven States are in risk of default of the Stability and Growth Pact. Spain, Belgium, France, Italy, Malta, Austria and Portugal
CE is critical to the achievement of the deficit targets especially for 2015 but also for 2016 (2.8% required for Spain, although the EC provides 3.9%).
For next year EC estimates that Spain will have a deficit of 4.6% of GDP 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 contingent liabilities in the energy sector , holds the EC.
On the Tax Reform , the Commission believes that “lacks the breadth and ambition that could have Had “by focusing on cuts in taxes on income of natural persons and companies. He also believes that involves partly a “missed opportunity” to simplify and improve deficiencies of the tax system and sustainably reducing taxation levied on the job.
The EC complains that Spain has not applied any of preventive measures provided for in Stability Law despite the “visible deterioration of public finances of autonomy” to ensure that the regions comply with the deficit.
The concern is centered mainly in France and Italy, plus Belgium However, concern focuses mainly on France and Italy, plus Belgium , and that eurozone partners demand more reforms and adjustments to straighten your accounts. The Commission has decided to grant until next March to reconduzcan their budgets, having received of the three governments reform commitments at the highest political level.
At the second meeting, ministers will have to discuss a extension of the bailout for Greece beyond December 31, when the European part of the program expires, given the impossibility of Athens and the troika (the EC, the European Central Bank and International Monetary Fund) to close the current fifth revision.
The main obstacle is the budget for 2015, since Troika believes that Greece will have a financing gap of between EUR 2,600 and 3,600 million and Athens as denies. An extension would enable the parties to reach an agreement 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, you should already do this because the parliaments of the eurozone, which must give its approval, begin their recess around December 19.
Therefore, the Eurogroup has to send the latest all documentation days to 14 or December 15 .
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