Brussels Won’t Penalise Spain for Seven Autonomous Regions Not Making Budget Targets

• Seven autonomous regions will not make their target of 1.5% for 2012
• Spain will not be asked to implement further measures for 2013
• Spain is expected to have a surplus budget in 2015

The European Commission in Brussels has confirmed that it will not ask Spain to adopt further measures to reduce its budget deficit for 2012 and 2013 despite recent news from the Treasury Department that seven autonomous regions will not make their agreed targets.

“We have concluded that Spain has taken efficient and effective action, as asked for and required, to correct its excessive deficit,” said a communitary spokesperson.

Spain’s aim was to reduce its public budget deficit to 6.3% in 2012 and from 6.3% to 4.5% in 2013 and to 2.8% in 2014.

To be able to achieve this, autonomous regions also had to reduce their figures – to 1.5% in 2012 and from 1.5% to 0.7% in 2013 and 0.1% the following year. In 2015 it is expected that Spain will have a budget surplus of 0.2%.

Although Spain’s autonomous regions have reduced their spending by 7.2 billion euro and increased earnings by 1.6 billion euro during the first four months of applying the austerity measures, there are still seven regions that will not make their target of 1.5% for 2012.

These regions are Andalucía, Murcia, Valencian Community, Castilla-La Mancha, Canarias, Extremadura, Baleares and possibly Cataluña, depending on how much money is generated through the selling of shares.

The Treasury has calculated that Galicia, Asturias, Cataluña, La Rioja, Aragón, Madrid, Castilla y León, País Vasco and Navarra will just about make their target, but it will depend on the level of execution of the austerity measures.

Nevertheless, both the Government and Brussels are happy with the plans that have been implemented and that the results achieved are what was expected.

 

Source: www.expansion.com, www.abc.es