MADRID (Reuters) – The Spanish government will raise before the end of July its forecast for GDP growth this year, currently at 2.7 percent, according to Economy Minister in office, which pointed to an even higher growth to 3.2 percent in 2015.
“at the moment the growth projection for the whole year is 2, 7 percent and this forecast is overly cautious, I think that when we have the next macroeconomic picture, which we will have to develop before the end of July (…) which will make the Government will revise upwards 2016 growth ” said Tuesday Luis de Guindos said in an interview with Onda Cero.
“there is not the slightest indication that there will be an economic slowdown (in the third quarter),” he said, adding that growth it could even be higher than 3.2 percent in 2015 after having “removed the slab” of political uncertainty with elections on June 26, where the PP, which governs functions was strengthened.
While it is expected that on Tuesday the European Commission gives three weeks to take action on the excessive deficit in Spain and Portugal in 2015, Guindos returned to be confident that there will be no sanction.
“I am absolutely convinced that there will be any penalty for Spain, “he said
.” we have three years of negative inflation rates, which impacts on government revenues; and this must be taken into account in the Commission ahead of a disciplinary procedure against Spain. Common sense will prevail “, Spain had a budget deficit of 5.1 percent, well above the allowed limit and higher said.
In 2015 the target of 4.2 percent agreed with EU partners on a plan to gradually bring the deficit below 3 percent of GDP.
Among the advocates not fining to Spain and Portugal has been Matteo Renzi, Prime Minister Italy, a country that De Guindos also provided support in plans to clean up its banking system.
“There is a problem to solve (in Italy) and knowing the difficulties we had in 2012, Spain will support Italy in this approach, “he said of the controversial plan Renzi to inject 40,000 million euros of public funds to strengthen the capital of banks in trouble.
the Italian banking system has suffered heavy rebuke in recent sessions, dragging other European banks and raising risk premiums southern Europe, especially following the vote of British citizens in favor of “brexit” due to fears about the high delinquencies with that load some entities .
on Tuesday, the Spanish Minister of Economy said that although regrets the eventual departure of the United Kingdom of the European Union, believes that create opportunities for other EU countries, as in the case of financial services or European agencies who decide to leave the British capital.
“they can come here, that’s what we have to fight (…) I think we can come to Spain perfectly, this is a very attractive country,” he said pointing among the reasons the competitive property prices, climate and infrastructure.
Guindos also referred to the recent use made by the Spanish government reserve fund Social Security to pay pensions July , indicating that the State contributions guaranteed pensions although these were not covered by contributions.
“they are guaranteed either by way of contributions or through taxes. Spain is financed in very favorable conditions. This ensures all the pensions, “he said
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