deficit targets

The People’s Party blocks redistributing the deficit targets among government levels in 2012 and 2013

October 3, 2012 01:50 AM | CNA

Catalonia and the Autonomous Communities run by the Socialist Party (PSOE) were asking to make the Spanish Government’s deficit targets stricter and to proportionally relax those of the Autonomies. The Spanish Prime Minister Rajoy and the Autonomies run by the PP have opposed this redistribution, which would have transferred part of the flexibility allowed by Brussels to the Autonomies. In fact, when Brussels relaxed Spain’s deficit targets for 2012 and 2013, the Spanish Government did not share this flexibility with the Autonomies, which are responsible for almost 40% of the public spending and the managing of the Welfare State services. On the contrary, it made the Autonomies’ deficit targets stricter for 2013.

The Catalan Government had a 0.59% deficit in the first half of the year, below the Autonomous Communities’ 0.77% average

September 14, 2012 03:20 PM | CNA

By the end of the year, Catalonia must meet a 1.5% deficit target. According to the Spanish Finance Minister, Cristóbal Montoro, the Autonomous Community governments are heading “in the right direction” to honour the deficit objective for 2012. The Catalan Government had a 0.38% deficit at the end of July, according to its own sources. This represents a €767 million deficit, while at the end of July 2011 it had a 2.09 billion deficit, which represents a 63% deficit reduction.

Merkel praises “the close cooperation” between the Spanish Government and the Autonomous Communities

September 7, 2012 12:08 AM | CNA

The German Chancellor is “impressed” with Spain’s reforms. According to Angela Merkel, the reforms are headed “in the right direction”, they need to be pursued “at all government levels” and they will need “time to show their results”, “as it happened in Germany ten years ago” with their structural reforms. Angela Merkel met with the Spanish Prime Minister Mariano Rajoy in Madrid, the day the European Central Bank announced it was buying sovereign bonds. Merkel stated that reforms have to continue “at all government levels”. The Chancellor also defended the European Union as a project guaranteeing peace and prosperity, and the Euro as “our common currency”.

The Spanish Government will study Catalonia’s petition for a temporary loan if the Liquidity Fund is not in place yet

September 3, 2012 11:43 PM | CNA

The Catalan Finance Minister, Andreu Mas-Colell, asked the Spanish Government to set up a temporary short-term loan system if the announced Liquidity Fund for the Autonomies is not in place this September. The Catalan Government has been insisting on the urgent need to define and put into force this financial tool to provide the Autonomous Communities with liquidity now their access to international financial markets is impossible as they face unsustainable interest rates. In addition, Mas-Colell stated that it is very likely that more budget cuts will be needed in 2013 to meet the 0.7% deficit target. He also criticised the Spanish Government for imposing stricter deficit objectives for the Autonomies while Brussels gives Spain greater flexibility.

The Catalan Health Minister warns that not subsidising 417 drugs may increase health spending

August 17, 2012 11:21 PM | CNA / Guillem Sánchez

The Spanish Social Security has published the list with the 417 drugs that from September will no longer be subsidised in order to reduce public spending and meet deficit targets. Most of them are some of the most consumed medicines for minor symptoms, such as heartburn, muscle pain, or diarrhoea. Since the measure is not popular among doctors, the Catalan Health Minister, Boi Ruiz, said that more expensive drugs with similar effects but not included in the list may now be prescribed, which would increase pubic healthcare spending instead of reducing it.

The Spanish Government will cut an additional €19 billion from the Autonomies’ budget within the next two years

August 4, 2012 12:21 AM | CNA

The Spanish Prime Minister, Mariano Rajoy, has announced further budget cuts for 2013 and 2014, totalling an additional €89.1 billion. These budget cuts are to be added to those implemented between 2010 and 2012. Autonomous Communities will have to cut their budget by an additional €19 billion in 2013 and 2014, which is added to the €15 billion already announced in Spring affecting education and healthcare. However, no details of the €19 billion plan were provided. Rajoy stated that in 2014 the Spanish economy will grow by 1.2%, leaving the recession behind. With this plan, Spain’s public deficit for 2013 will be set at 4.5% and at 2.8% for 2014.

Outrage in Catalonia after Spain cuts regional deficit targets and denies compensation for VAT rise

July 13, 2012 04:08 PM | CNA

The Catalan minister for the Economy, Andreu Mas-Colell, said in an interview that he will ask to speak directly to Brussels if Madrid decides to intervene in Catalonia’s finances. The minister is very disappointed with the results of a meeting between the 17 autonomous communities and the Spanish Minister Cristóbal Montoro. At the summit, Montoro announced a new cut in the regional deficit targets, from 1,1% to 0,5% for 2013 and from 1% to only 0,1% the year after. This could imply a new adjustment of about €650 million on top of the 1,500 million already announced by Catalan President Artur Mas only two months ago. The Catalan government spokesman, Francesc Homs, did not deny the possibility of new cuts in Catalonia in the near future. If they are confirmed, those would be the fourth round of spending cuts implemented in the country since Mas entered office in November 2010. Meanwhile, other autonomous communities still have to start to reduce spending.

The Spanish Government doesn’t transfer the money, but transfers the blame

April 25, 2012 12:36 AM | CNA

The Spanish Finance Minister, Cristóbal Montoro, blamed the Autonomies and town halls for Spain’s public deficit. Montoro stated that the Spanish Government is meeting the deficit objective for 2012 with the results from the first quarter. However, Catalan MPs reminded Montoro that he is refusing to pay the money it owes Catalan institutions and that with this strategy he transfers the blame for the deficit by not transferring the funds. The Catalan Government directly accused the Spanish Executive for their “massive lie”. According to internal studies from the Catalan Government, the Spanish Executive made incorrect calculations by saying the Autonomies could save €10 billion in healthcare and education with last week’s measures.

The Spanish Budget for 2012 violates approved laws regarding investment in Catalonia

April 3, 2012 10:08 PM | CNA / Gaspar Pericay Coll

The Spanish Government will not respect the territorial funding scheme, approved by the Spanish Parliament and in a referendum, as it will only invest 11% of its regional spending in Catalonia. According to the current legislation, in order to compensate for an historical lack of infrastructural investment in Catalonia recognised by the Spanish Parliament and the Constitutional Court, the Spanish Government must invest at least the equivalent of Catalonia’s economic weight within Spain, which represents 18.7% in 2012. Furthermore it does not include €1 billion pending from 2008 and 2009, to which Catalonia is legally entitled.

Every party in Catalonia, including the PP, asks for more proportional deficit targets in 2012

March 5, 2012 11:31 PM | CNA / Gaspar Pericay Coll

There has been a unanimous call in Catalonia for greater flexibility of the deficit objectives applied to the Autonomous Communities for the current year. Every political party in Catalonia, including the People’s Party (PP), has asked the Spanish Government to provide more flexibility to the Autonomies, which manage 40% of Spain’s public spending and run basic Welfare State services. The Spanish Government has set a new deficit target of 5.8% of Spain’s GDP for 2012; internally, the Central Government allowed itself a deficit of 4% and ordered the Autonomies to commit to a deficit of 1.5%. Some Catalan parties have said that the Spanish Government has double standards.

The Spanish Government sets new deficit targets without agreement from neither the EU nor the Autonomous Communities

March 2, 2012 10:38 PM | CNA / Gaspar Pericay Coll

The Catalan Government considers the Spanish Government to be “disloyal” for unilaterally setting the new deficit objectives and for not allowing the same degree of flexibility to the autonomous communities, who manage all basic services. The Autonomies’ new deficit target has been set at 1.5% while that of the Spanish Government is set at 4%. Mariano Rajoy has announced that Spain will have a total public deficit of 5.8% of its GDP, and not the 4.4% previously agreed with the rest of the European Union Member States. Rajoy has argued that, with a recession coming, the situation has changed and the stability pact foresees changing the targets.