The caretaker government has reached a tacit agreement with the European Commission which shall be granted Spain an extra year to bring the public deficit below 3% of GDP, in exchange for continuing the pending reforms, as highlighted by ABC today.
De Guindos (Photo: PP)
the daily details that the deficit target for 2016 that the Spanish government had initially agreed with the European Commission was 2.8% of GDP, after ending last year at 4.5%. This would require a fiscal adjustment, including spending cuts and higher revenues, about 20,000 million euros in 12 months. The agreement reached – for now verbal – postponed to 2017 the achievement of that goal. According to ABC, it will be collected in writing in the updated stability program and reforms that Spain sent in April to Brussels.
As a guarantee, Spain must commit to not reverse the reforms already made and continue to apply it are pending. Among the concerns highlighted Brussels high rates of youth unemployment and long-term deficit and autonomies. Furthermore she insists on the liberalization of public services, enforce the law market unit, review the policy infrastructure, especially the AVE, improve the efficiency of health spending and policy more transparent public procurement to tackle corruption.
ABC 1,36,37
(Text Prepared made from news summary press services Moncloa)
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