January 15, 2021

Brussels puts Sanchez's accounts in doubt and asks for clarification

Brussels puts Sanchez's accounts in doubt and asks for clarification


BrusselsUpdated:

The President of the Government, Pedro Sánchez, is convinced that the European Commission will appreciate its budgetary plans, despite the fact that the community executive is expected send you a letter today in which he will describe his preliminary objections to the draft that he had sent him last Monday. The fact that Spain is on the list of countries that will receive this first signaling does not bother the chief executive, who refused to consider that this means a criticism of his plans. According to sources of the Commission, the letter that will receive the president of the Government does at least two recriminations: the first one that what they have sent it is not a budget project and that, therefore, it may not be the same as what is then referred to Parliament and that what they have seen so far shows an "insufficient effort" to reduce the structural deficit.

At this summit, the President of the Government has shown that he was not comfortable exposing himself to journalists. On Wednesday night he left the building practically incognito to avoid meeting the cameras and at the press conference yesterday he accepted only formal questions and avoided an informal dialogue as had happened in previous summits.

The part of his interview with the president of the Commission, Jean-Claude Juncker (who probably remembers that one of his first decisions as general secretary of the PSOE was to order that his MEPs did not vote him), is the basis of his confidence that the budgetary control procedure will give the reason to him in spite of the fact that the structural effort proposed by the Government (0.4%) is lower than Brussels asks (0.6%).

His plot obsession is that the last two years the Commission also sent this letter to Spain, although he avoids saying that it was precisely because they were carried over due to the political blockade, so the Government of Mariano Rajoy could not do otherwise . But for Sanchez, what they have sent to the Commission establishes a moderate effort to reduce the structural deficit and a two-point reduction in public debt.

The Commission will send or have already sent letters to several countries, including Italy and Belgium, in addition to Spain. In the Belgian press, the news that this letter put the accounts of his country next to those of Spain caused a considerable stir throughout the morning.

"It is the third letter in three years that the Government of Spain receives and I only ask you to compare it with the letter of what was asked of the Government in 2017 and 2016 and see the difference in favor of this year because of the confidence that there is in Spain. Perhaps for the ultraconservatives the accounts do not add up, but it is a budget proposal that for the first time in 12 years includes a primary surplus, which reduces the structural deficit by 0.4% and public debt by two points. We're going to meet the deficit targets. "

Pending fiscal measures

Sanchez also supports the fact that the role he has sent to Brussels has been endorsed by the independent budgetary authority and in his determination to promise that he will meet the deficit targets, even though everything depends on his offensive success collection It is possible that the Commission's warnings will be repeated in the November forecasts where the measures taken by the Government after this weekend will not be taken into account. If the Council of Ministers approves the two decrees-law to increase taxation the Commission will still be able to assume them to make the calculations of what it expects that they can collect.

At the European Summit of the Euro, Sanchez asked the other leaders to support his idea that there is a European fund for unemployment that allows financial help to countries suffering from serious unemployment problems. The Commission had made a proposal along the lines of a Franco-German idea that proposed dedicating some 30,000 million to possible investments to promote employment. Sanchez asks for direct subsidies.

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