Spain will meet fiscal targets, says economic VP

10 Nov 2021

Spain will be able to meet this year’s deficit and debt reduction objectives, even in a “most adverse” economic scenario.

 

This is according to the Vice President of Economic Affairs of the Government, Nadia Calviño. Following a meeting of EU Economy and Finance ministers in Brussels (Ecofin), Calviño said that the “up and down” revisions that are taking place “do not have to surprise us” because of the environment of “relative uncertainty” and also due to “some changes” as a result of the pandemic that may be impacting the evolution of economic indicators.

 

In this situation, Calviño added that the government has opted for a “very clear line of action” to prepare the General State Budgets (PGE) for this year and 2022, based on “prudence”.

 

“That prudence allows us to be in line to meet the objectives of reducing deficit and debt over GDP in 2021 even in a macroeconomic scenario that may be more adverse,” when asked about a likely decline to the growth forecast for Spain from Brussels on Thursday.

 

Calviño continued: “We have adopted a prudent attitude when preparing the General State Budgets for 2021 and also for 2022 so that, in fact, the better performance of tax revenues allows us, even in a not so positive macroeconomic scenario, to be in line to meet the objective of reducing deficit over GDP and debt over GDP already in 2021 and also in 2022.”

 

The economic vice president didn’t make comment on the proposal to increase social contributions 0.6% for 10 years: “I prefer not to pronounce on proposals that are currently being negotiated and debated by social agents,” going on to underscore the “constructive environment” in which the discussions are taking place to come to an agreement. “As a responsible government, we believe that it is time to strengthen our public pension system,” and it’s essential to “let the social agents work.”