Brussels demands that Spain begin to withdraw aid due to the price crisis to ...

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The Government should begin to fold the umbrella of aid launched to weather the price crisis. The European Commission has recommended that Spain gradually withdraw the support measures approved to cushion the impact of the economic consequences of the war in Ukraine , with the aim of reducing the high deficit. The idea is that this withdrawal will begin at the end of this year, to completely eliminate them in 2024 , and use the savings to reduce the public deficit and limit spending. In its latest spring recommendations to member countries, Brussels warns that it is likely that, if new price increases occur, more support measures will be necessary, and that these should be directed only at vulnerable groups (companies and households) and Your spending should be contained.

The objective is to return to the fiscal rules of the Stability Pact , which have been frozen since 2019 due to the pandemic, and which set a maximum deficit of 3% and a debt ceiling of 60%. To achieve this, the Commission has asked the Government to use a "prudent" fiscal policy and limit the nominal increase in spending. Specifically, the Government would have America Cell Phone Number List to reduce net primary spending financed at the national level in 2024 to a maximum of 2.6% compared to the previous year, which implies a structural adjustment of at least 0.7% of GDP in 2024. Brussels It is estimated that this net primary spending financed at the national level will grow by 1.4% in 2024, below the recommended growth rate. The European Commission has also endorsed the fiscal adjustment path proposed by the Government, which plans to reduce the red numbers to 3% in 2024.

The Government has already promised Brussels that it would reduce the deficit to 3% in 2024 , a year ahead of schedule. Today, the vice president and Minister of Economy, Nadia Calviño, welcomed the fact that Brussels confirmed this fiscal path presented by the Government. According to the Stability program sent to Brussels, the general government deficit is expected to gradually decrease to 2.7% of GDP in 2025 and to 2.5% in 2026. Therefore, the deficit of Spanish administrations decrease below 3% of GDP in 2025 and that the public debt ratio falls from 109.1% of GDP at the end of 2024 to 106.8% at the end of 2026. For the period after 2024, Brussels also calls for the continued implementation of a medium-term fiscal strategy of "gradual and sustainable" consolidation, combined with investments and reforms conducive to higher growth, in order to achieve a "prudent" budgetary position medium term until 2026.