MADRID, February 20 (Xinhua) – The US rating agency Moody’s outlook worsens the debt by political uncertainty in Spain by lowering the “rating” if the next government is not following the pending reforms, a decision in which the markets seem unconcerned over the future governance of the country to recover their economic data.
the current political instability has meant that Moody’s has given low passed to keep Baa2 to Spain , but lowers outlook from positive to stable, which means that the possibility that existed as of last year to raise the note away, what it does is worsen its outlook on Spain by a slowdown in reforms.
Moody’s notes as the reason for its decision that the control of public accounts, especially those of the autonomous communities and the pension system is worse than expected and that “regardless of who assumes the government is unlikely to additional reforms necessary to support growth in the next three or four years are approved. “
Although Spain as collected today, Saturday, the national media, is one of the Western countries more solvents for its high growth, “fragmented political map resulting from the elections on December 20 does not lead to renewed reform effort,” and the agency adds that he believes there are few signs that there will be economic and additional tax reforms because reformist political forces have no weight in parliament to pass measures.
the Moody’s agency has improved the outlook for the Spanish economy since the December 5, 2013 when he was at Baa3 with a negative outlook, but in recent months has deteriorated to fall into the dreaded “junk”.
Finally, today highlighted the national media, Moody’s had already indicated that “the outcome of the legislative elections on 20 December was negative to the solvency of Spain, as political uncertainty increases and raises questions about the ability and willingness of the new government to continue with structural reforms and fiscal consolidation. ”
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