Business The Government will negotiate with Brussels a new path...

The Government will negotiate with Brussels a new path of less demanding deficit | Economy


The finance ministers, María Jesús Montero, and the Economy, Nadia Calviño. On video, statements by Montero.

The Sanchez Executive intends to make the deficit objective agreed with the European Commission more flexible before presenting the new Budget for Congress in 2020 and giving a final binder to the era of Mariano Rajoy. The objective is to gain more fiscal margin to finance its social policy project, finally get rid of the accounts designed by the former PP minister Cristóbal Montoro – with whom he continues to work after more than a year extended – and update the stability path approved by the previous popular Executive, which is still in force.

The Rajoy Government committed to Brussels to reduce the deficit to 1.3% of GDP by 2019 and to 0.5% this year. The political instability of recent months has delayed the consolidation of public accounts and has removed those goals. The Socialist Executive already tried to approve, without success, a new path that was knocked down in the Senate at the end of 2018.

Last April, the Government of Sanchez estimated in its Stability Program that the red numbers of all Public Administrations would be 2% of GDP in 2019 and 1.1% in 2020. Six months later, in In October, it sent the Commission a new forecast in its Budget Plan for 2020, which delayed the adjustment, leaving the gap at 1.7% for this year. Even so, these forecasts are far from the Brussels forecasts, which calculates a 2.3% hole in 2019 and 2% by 2020.

The task of negotiating with Brussels corresponds to the Ministry of Economy of Nadia Calviño and could extend the process of approval of public accounts. According to sources of the Treasury, the new expenditure ceiling – necessary prior step – will not be processed in Congress until February. Likewise, the Budgets will not be presented without having the necessary support for approval in the Courts.

Even so, the same sources consider that the new accounts could be ready for the first quarter of the year. Also the Minister of Finance and government spokesman, María Jesús Montero, confirmed Monday in his "no inauguration" – as he repeats in office – that these will be presented "as soon as possible." Montero also stressed the need to move forward in the "taxation of the 21st century" and in the reform of the regional financing model to close "gaps." For this, the minister said that it is "fundamental to weave alliances" with all social agents and reiterated “That each one contributes according to his capacity and receives according to his need" "It will not be an easy legislature, although since we have arrived none has been”He joked.

For his part, José Luis Ábalos, who repeats at the helm of Development, now the Ministry of Transportation, Mobility and Urban Agenda, said Monday in his inauguration that he wants his department to stop being the ministry of infrastructure construction to focus more in people's needs, Hugo Gutierrez reports. "We are not going to start the legislature by filling maps with promises of more and more infrastructure," said Ábalos. Despite this, he added in a room with the presence of the main construction companies in the country that these investments will continue to have prominence and recalled that there are still runners to complete (especially in the railway field).

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