July 29, 2021

Calviño links the approval of the accounts with a greater debt reduction

Calviño links the approval of the accounts with a greater debt reduction

The Minister of Economy, Nadia Calviño, said today that the Government "works day and night" to achieve the necessary consensus in order to approve budgets since, unlike the extension, would "reduce the deficit and public debt in a more determined way ".

Calviño has made these statements in San Sebastian during his speech at the 7th Business Forum of the Chamber of Commerce of Gipuzkoa, where he was accompanied by the presidents of Laboral Kutxa, Txomin García; from El Diario Vasco, José María Bergareche, and from EY Spain, José Luis Perelli.

The Minister of Economy and Business has insisted that the "plan A" of the Government is to move forward its budget project, which is what "Spain needs" because it combines "budget discipline" and "closure" of social "gaps".

"From the perspective of fiscal discipline, our budget plan is desirable for the extension since it allows to reduce the deficit and public debt more decidedly in 2019 and this is important to keep in mind," he stressed.

Asked if the lack of support for the budget could imply an electoral advance, the Minister of Economy has stressed that "the call for elections is a prerogative of the President of the Government and that he will convene when it seems appropriate."

Calviño, who has denied that he perceives "uneasiness or concern" in the EC with respect to the Spanish budget, has also referred to the "robust" growth of the Spanish economy.

"The data is positive but we can not rest on our laurels," added the minister, who has defended an active economic policy that has among its "keys" fiscal discipline.

He has advocated, in this sense, to take advantage of the moment to reduce the public debt on GDP. "Our ambition is to go from 98.1% of GDP at the end of 2017 to 95.5% in 2019," he underlined.

He criticized that "fiscal policy" has been oriented in recent years to "reduce taxes" since this "has prevented a more decisive reduction of public debt on GDP.

With regard to pensions, the minister has defended the "soundness" of the social security system and has assured that "there are no reasons to be worried in the short term".

However, to ensure its future solidity, he has advocated a reflection and recalled that the Pact of Toledo has among its functions to analyze the evolution of "elements of sustainability" such as the pensions themselves, employment, contributions, salaries or demographics.

Regarding the regional financing model, Calviño has indicated that it is a "complex issue" and that it requires a "revision", although he has acknowledged that in this legislature it will probably not be possible to address a comprehensive review, thus will focus on facilitating the smooth functioning of the current one.


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